Channel Management Engagement for a Wound Care Management Multinational
A wound care management MNC plans to re-structure its distribution channel and address certain distribution related challenges. The client engaged UC Strategy for identifying the pain points of the current distribution structure. The primary objectives were as follows:
● What is the optimal channel partner count per city class?
● What is the appropriate channel partner structure for client?
● How will the channel partner economics change if ABC provides own nurses?
● How are Govt liaisons leveraged for distribution?
● What strategies are adopted by teaching institutions?
● How to minimize pilferage risk ?
● How to ensure QA/QC of the equipment ?
● What are the various channel engagement strategies?
● What should be the appropriate distribution model for AWD segment?
The following approach was utilized to address the primary objectives and gather the required data:
● Client’s internal data was studied and analyzed to observe the underlying patterns of the channel partners and identify the pain points
● Primary research was conducted with 17 distributors and 5 sub distributors via in person meets and
telephonic calls across Class A and Class B cities
● 3 Expert calls were conducted
● Reports of previous engagements of UC with the client were studied to build context and ensure
The engagement yielded following recommendations:
● A 5 rules framework was established to arrive at an optimal no. of channel partner count across cities of Class A, Class B and Class C
● To ensure sustainable distributor economics and gain more direct control in key markets, it was recommended to convert the sub distributors in Class A and Class B cities (that contribute to 80% revenue of Class B cities) into direct distributors
● Remaining Class B cities and Class C cities can be catered as is by direct distributors in neighboring
cities or by the sub distributors
● Prioritization list was created to enable the client and transition into recommendations
● Client was recommended to provide nurses to sub distributors of remaining class B and class C cities to enable them to achieve economic sustenance
● Advantages and disadvantages were outlined for company led tenders vs distributor led tenders
● Recommendations were outlined to target teaching institutions
● Online and tracking solutions were recommended to minimize risk and gain better control if nurse activities during the process
● An Online Asset Registry system was recommended along with increasing direct relationships will
lead to better tracking and timely QA/QC of the machine
● Incentive strategies for the Channel partners were recommended
● Emerging recommendations wrt the AWD segment were given base on competion benchmarking