Distributor Rationalization

A spin-off business from Baxter Healthcare inherited assets that needed to be verified and rationalized in many locations to ensure they were aligned financially and strategically with the new stand-alone business.

Findings

• We worked with a cross-functional team to oversee distributor termations and market exits, create a recruitment and due diligence process for existing and new distributors, and design and implement a distributor onboarding/re-training program

                                                       Solutions

• Worked with local resources and cross-functional team to verify all foreign assets that came with the spin-off
• Identified strategic, high-potential markets where a direct sales force made financial sense
• Identified mid-potential/future potential markets where distributors were the preferred model; implemented evaluation process to assess if existing distributors were effective partners, and where they were not, worked to identify better channel partners
• Identified small-potential markets, and prepared plan to exit these markets

Results

• New distributors were identified in markets that previously had been direct, and headcount were hired by the new distributors
• Many existing distributors were terminated and alternative sources of products were found for end customers in these markets
• Repeatable processes established for future distributors