Capturing a new value segment in the medical device market.
After several years on the market, the client’s hematology testing system was facing competition from counterfeit consumables manufacturers. The client sought to address real user needs through a digital consumables management offering that would increase sales and customer satisfaction. The client decided to work with CES to implement a digital strategy and solution because of our excellent reputation.
The client’s hematology testing system is one of the most advanced on the market. The device maximizes efficiencies with fast test times and easy to read results. The test works by placing a test tube sample into the testing system. When the sample mixes with the reagents within the test tube, the system is able to determine the results. However, after several years on the market, competitors began making test tubes compatible with the client’s testing system, reducing consumable sales significantly. The client, a leading medical testing device manufacturer, came to CES in need of a strategy and solution to address this competitive threat and regain market share of their testing consumables.
The client began engagement with the CES Analytics and Research team to build a strategy to boost consumables sales within their market. The team began by identifying competitors and surveying customers to determine what factors influenced their purchase decision. While price was a large driver, the results of the research showed that the speed of refills may be even more important to end-users. The client’s supply chain was slow and this delayed service often caused the clinics to run out of supply all together. Clinics were then forced to turn to competitors’ counterfeit products to resupply their stock in the appropriate time frame. This understanding framed a clear solution, help the client increase the speed at which they fill consumables orders. By providing a proactive inventory tracking service, the team knew they could therefore increase consumable sales and help the client gain back lost consumable market share.
A digital strategy was devised to help the client track customer consumable inventory. The client already had the expertise to extract usage data from their customers’ testing systems and had been doing so for years. Our team found a new use for the data being collected to create a service-based offering that automatically resupplies consumables inventory for customers when they reach a set threshold.
We worked closely with the client to create a completely customized digital platform solution to support the new consumables management function while leveraging the internal systems they already had in place. An Analysis of Alternatives (AoA) helped the team to determine the best architecture to support the client’s existing devices and users. The client chose CES’ HyperSaaS™ platform for the ability to leverage existing systems to get up and running quickly and efficiently.
Our proposed platform would store and analyze the usage data from the client’s testing systems. The platform could then plug directly into the client’s ERP, allowing easy access to product inventory and ordering information. Business rules were created as a result of the analytics so a restock shipment of consumables would be triggered after an inventory threshold was reached. Our team worked to ensure that all pieces of the digital solution were linked together for seamless communication between the testing systems, client’s existing business systems and our platform components.
By implementing a digital strategy to address the competitive threat, the client was able to expand their products business into a product-with-service offering by setting up a digital consumables management system for customers. Through this solution, the client was able to:
- Increase consumable sales through automated restocking of their testing tube consumable.
- Deepen customer engagement by increasing communication touch points through supply restock service.
- Boost customer satisfaction as heavy users including labs and hospitals are never waiting for a consumables shipment or run out of valuable inventory.
- Provide data to analyze usage trends to improve the product and predict new areas of new product development.
- Targeted marketing opportunities to increase usage in high volume customers and spur growth in lower volume customers.
The customer is a leader in glucose monitoring and hematology systems for use in lab, hospital and clinic settings.
- Project Name Hematology Testing System
- Client MEDICAL DIAGNOSTIC EQUIPMENT COMPANY