qualanex - final report vfinal
TRANSCRIPT
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Final Report
Senapathy RajagopalanSpencer O’NealW. Steven ManDrew Wagner
Jordan Meredith
May 5, 2015
Company Proprietary and Confidential. All Rights Reserved.
Table of Contents
2
Recommendations
Results and Findings - Pricing
Results and Findings - Customer Satisfaction
Results and Findings - Web Presence
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Recommendations
3
Category Recommendations and suggested next steps:
Pricing:Price to value is a key driver for
new customers
• Recommendation: Our survey results indicate that customers believe Qualanex pricing is currently optimal
• Next Step: Compare current services/pricing to competitors • Next Step: Conduct discount analysis on existing Qualanex sales
Customer Satisfaction:Customers are very satisfied with
Qualanex
• Recommendation: Continue to maintain measures that show high significance and correlation
• Recommendation: Improve sales process measurements for greater customer satisfaction
Web PrescenceSignificant opportunity for
improvement
• Recommendation: Implement website communication channels (i.e. chat box) to facilitate customer and Qualanex interaction
• Recommendation: Provide online tracking/updates and analytical tools as well as tutorials for customers
• Recommendation: Post customer reviews and testimonials similar to Qualanex competitors
• Recommendation: Leverage social media as a channel for marketing outreach
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Table of Contents
4
Recommendations
Results and Findings - Pricing
Results and Findings - Customer Satisfaction
Results and Findings - Web Presence
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Pricing to value is a key driver to why customers choose Qualanex
5
• Networking and referrals are the main new customer sourcing channels
• Our survey results indicate that new customers are sensitive to price when considering Qualanex
Forward distribution
IT services
Uncertain
Recall management
Waste pass-through
Trade returns
0 2 4 6 8 10 12 14 16
1
1
1
8
10
16
Services Used
Internet or search engine
Qualanex website
Sales team
Other (please specify)
Referral from Qualanex customer/word of mouth
Networking/Industry event
0 1 2 3 4 5 6 7
2
2
2
2
4
6
Referral Source
Location
VAWD Certification
Turnaround time guarantee
Others
Compliance
Accuracy (and credit reductions) through 100% double verification
Pricing/value for money
0 1 2 3 4 5 6 7 8 9
2
4
4
7
8
8
Reasons for Hiring Qualanex
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Table of Contents
6
Recommendations
Results and Findings - Pricing
Results and Findings - Customer Satisfaction
Results and Findings - Web Presence
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Stellar communication measures
7
Quick and efficient solutions to issues
Response time
Providing updates on situations or orders
Overall ease of communication
Availability of staff (hours of operation)
91% 92% 93% 94% 95% 96% 97% 98%
93.75%
95.54%
95.54%
96.43%
97.32%
Communication
• Overall, customers are pleased with all communication attributes of Qualanex
• Customers consistently ranked “Providing updates on situations or orders” as being the most important attribute
• It is important for Qualanex to keep up the good job of keeping customers informed in all their engagements
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Solid trust measure results between Qualanex and customers
8
• Customers fully trust Qualanex in all their dealings
• Qualanex should keep up this trust level as it is very important for customer’s satisfaction with Qualanex
Quality of training provided
Ease of accessing records and past files
Speed of response
Level of trust with the company
Email/phone notifications about open work orders or queries
86% 88% 90% 92% 94% 96%
89.29%
91.07%
91.96%
92.86%
94.64%
Trust Level
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Current sales process measurement levels are adequate
9
• Qualanex is performing high in all their function related to the sales process
• Customers ranked “Accuracy of sales information” and “Frequency of sales follow-up” consistently as being important parameters in sales process
• Improving sales process can lead to better satisfaction among customers and can be beneficial from a revenue prospective
Frequency of sales follow-up
Accuracy of sales information
Relevance of sales information
Ease of use of agreements and documents
Ease of negotiating agreement
Expectations met after sales process
Understanding customer needs
74% 75% 76% 77% 78% 79% 80% 81%
76.19%
76.79%
77.68%
78.10%
78.10%
79.05%
80.36%
Sales Process
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Training & On-boarding measures are satisfactory
10
• While “Effectiveness of training” is very good, customers are less satisfied with “Ease of setting up return policy”
• Qualanex should improve on the less satisfied Training & On-boarding measures as all of the attributes consistently show high correlation with customer satisfaction
Ease of notifying pharmacies about new return vendors
Ease of setting up pricing logic
Ease of setting up return policy
Availability of follow-up training opportunities
Time and efforts required to learn system
Responsiveness of training personnel
Convenience
Effectiveness of training
75% 80% 85% 90% 95%
81.25%
83.04%
83.93%
86.61%
90.18%
90.48%
91.07%
91.07%
Training & On-boarding
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Our survey indicated mixed results regarding expectation measures
11
• Our statistical analysis revealed that expectations of customers can impact their satisfaction
• We encourage educating Qualanex’s value proposition to its customers so that customers have realistic expectations from the company
Decrease in disputes with pharmacies for returned product
Decrease in overall credits issued for returned product
Turn around time of your product processing
Turnaround time of issuing Return Authorization
60% 65% 70% 75% 80%
67.86%
71.43%
74.29%
77.14%
Meeting Expectations
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Strong product accuracy and opportunity for improvement on timeliness
12
Availability of back-up information (photos, line item detail) about returned product
Frequency of mistakes in line item detail
Ability to accurately capture line item detail
Speed of resolution of issues
Accuracy of implementation of manufacturer's return policy
80% 85% 90% 95%
84.82%
86.61%
90.18%
91.96%
91.96%
Product Processing Accuracy
Seriousness of delays
Frequency of delays
Product processed within required timeframes
Communication by Qualanex as to sources of delays
Qualanex resolution of delays
Responsiveness of Qualanex to queries about delays
70% 75% 80% 85% 90% 95%
79.46%
81.25%
85.71%
85.71%
86.61%
89.29%
Product Processing Timeliness
• Product processing timeliness can be improved as they have a high correlation with customer satisfaction
• Qualanex should also look into reducing line item details and adding a back-up information feature for returned products
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Table of Contents
13
Recommendations
Results and Findings - Pricing
Results and Findings - Customer Satisfaction
Results and Findings - Web Presence
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There are opportunities for improvement on the website interface
14
• Customers are highly satisfied with Email and Phone communications but the website is lagging behind
• Qualanex should improve the website as it can have a high impact on customer satisfaction
Website
Phone communication
Email communication
80% 82% 84% 86% 88% 90% 92% 94% 96% 98%
86.61%
92.86%
96.43%
User Friendliness
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The website can be a primary touch point between Qualanex and the customer
15
• Accounting and Operations departments (not senior executives) are likely to use the improved website. These users can influence overall purchase decisions so Qualanex should selectively incorporate features requested by them
• Qualanex should focus on “Realtime updates”, “online return authorization”, and “printable authorization forms” as they are most important for customers and likely to be used web features
Monthly newsletters/updates
Online Billing
24/7 online chat assistance
Printable authorization forms
Online return authorization forms
Drug recall announcements
Available realtime updates on returns
60% 65% 70% 75% 80% 85% 90% 95% 100%
73.33%
78.46%
81.82%
85.71%
87.69%
90.77%
95.71%
Web Use Features and Importance
Importance Web Use
C-suite managementMarketing
Service managersDivision managers
Sales representativesClient services member
Transportation departmentOther (please specify)
Account managerOperations team
Customer relationsAccounting
0 2 4 6 8 10 12 14111
222
33
67
1012
Website User
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Our research indicates that current competitors heavily leverage their respective websites for product marketing and customer service
16
• Welcome page identifies competitive advantage, services offered, value proposition, and awards & recognitions
• About us section outlines history of company, leadership team, and mission statement in detail
• Services section shows description of services offered and their unique competitive advantage, video where applicable, and testimonials
• Customer tools section:• Inmar: web apps that allow its customers
to manage returns, coupons, rebates, and invoices.
• Also provides financial management and analytics tools
• Other select observations:• Utilization of real photos (warehouses,
equipment, etc)• All competitors have membership
associations published• Published case studies
Competitor Website Observations:
• Website communications channel (i.e. chat box) • Customer reviews and testimonials section
• Develop customer tools and online tutorial
• Monthly/Quarterly updates for customers
• Search engine optimization
• Social media:• Linkedin:
• Stericycle has over 10,000 followers while Inmar has 4,000
• Has the ability to communicate with followers through recent updates
• Blogs (GENCO and Stericycle currently both have blogs)
Suggestions for Qualanex:
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Appendices
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List of the Appendices
Statistical Analysis
Mid-Point Report 3.24.2015
18
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Statistical Analysis
19
Definitions:• Results
• Reveal actual survey results as reported by client• Displayed in blue bar-graphs• Scale of 1-7, normalized to 100%
• Correlation• Reveal the level of importance, measure of impact• Scale of -1 to +1• Measures the positive or negative impact of one factor (survey measures) upon another
(satisfaction)• Significance
• Measures accuracy or ‘truth’ in findings• Proves actual relationships between variable tested for (Y) and variables used to measure
Y (X)• Justifies findings in a statistically meaningful way
• <0.01 = 99% significance, <0.05 = 95% significance
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ALP Program: Mid-Point Report
Senapathy RajagopalanSpencer O’NealW. Steven ManDrew Wagner
Jordan Meredith
March 24, 2015
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Executive Summary
There are revenue opportunities within Qualanex’s existing customer base– Top 10 customers make up close to ~90% of Qualanex’s total sales while 22 customers make up
~10% of sales.
Customer survey is designed to capture Qualanex key value drivers– We recommend utilizing a kick off letter to assess participation rate– Survey results are expected before April 2015
Research summary for Quanalex’s major competitors– Genco, PharmaLink, Stericycle, and Inmar
Website ideas / suggestions– We believe Qualanex will benefit from a website revamp leveraging a multi-level layout
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Table of Contents
22
Financial analysis and key findings
Customer survey
Competitor research
Website ideas / suggestions
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There are revenue opportunities within Qualanex’s existing customer base
23
22.0%
19.5%
12.1%
46.4%
Sales By Customer
Abbott Laboratories
West-Ward Pharmaceuticals
UCB Inc.
Top 10 Customers TOTAL % of Total
Abbott Laboratories 2,575 22.0%
West-Ward Phamaceuticals 2,283 19.5%
UCB Inc. 1,410 12.1%
Breckenridge Pharmaceutical, Inc. 1,102 9.4%
WM HealthCare Solutions 768 6.6%
Glenmark Generics Inc., USA 637 5.4%
Hospira, Inc. 513 4.4%
Boca Pharmacal, Inc. 450 3.8%
Acella Pharmaceutical, LLC 366 3.1%
Upstate Pharma, LLC 312 2.7%
Observations:• Abbott Laboratories, West-Ward Pharmaceuticals, and UCB Inc. make up more than 50% of Qualanex’s
total sales• Top 10 customers make up close to ~90% of Qualanex’s total sales
Follow-up items:• Conduct sales penetration analysis to analyze cross-sell opportunities• Derive revenue opportunities associated with the other 22 customers who make up ~10% of sales
*In thousands (000)
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2015 forecast indicates strong growth in trade returns and decline in recalls
24
2013 (A) 2014 (A) 2015 (F)0%
20%
40%
60%
80%
100%
30% 31% 31%
7% 5% 9%
25%18% 6%
29%32% 42%
9% 14% 12%
Revenue By Product / Service
Distribution and Warehousing
PharmEcology / IT
Recalls
Trade Returns
Waste Past Thru
Observations:• Strong growth in trade returns and material decline in recalls
Follow-up items:• Follow up with Qualanex to understand key drivers behind current trends especially for the forecasted
period (YR 2015)
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Table of Contents
25
Financial analysis and key findings
Customer survey
Competitor research
Website ideas / suggestions
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Our customer survey will identify key value drivers of Qualanex
26
Key Objectives:– Determine competitive advantage/value proposition– Identify areas of differentiation (# of services) vs. competitors– Understand customer preference in greater depth to enhance service offering– Discover areas of strength/weakness, devise strategy to improve areas
Tactics:– 3 Types of question format – single answer, ranking order, Yes/No/Fill in blank– Address service offerings vs. transaction process vs. competitor comparison
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We recommend utilizing a kick-off letter to assess participation rate
27
We recommend utilizing the following kick-off letter to determine customer willingness to participate:
Understand types of questions that
result in most value add.
Understand different
customers.
Draft survey content and
address customizable aspects for
specific customer needs
Analyze results and make
recommendations to address areas for improvement
Anticipated Process Flowchart
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Our survey process should conclude prior to the month of April
28
Timeline
• Plan to complete survey with feedback from Qualanex by end of month• Survey should be sent out early march with an estimated 2-week turn-around time frame• Once returned, results to be analyzed and recommendations made in final project deliverable
Obstacles
• With a relatively small customer base (~30), success will heavily depend on a strong response rate from most customers
• If customers are highly diversified in services they use, will need to customize survey adding time necessary to complete
• Will need active participation and feedback from Qualanex to truly understand customer demands and expectations
Jan Feb Mar Apr May
ALP
Task 2
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Table of Contents
29
Financial analysis and key findings
Customer survey
Competitor research
Website ideas / suggestions
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GENCO – Competitor findings
30
Advantages:• Search Engine Priority• Economies of Scale: 600 Million returned items processed annually• 300 customers with annual sales of $1.5 Billion• Extensive warehouse and distribution assets• Two decades of experience in PRL.• Data analysis and recommendations and solutions provided to customers.
• Ie) which products are slow movers or continuous problems• Real time reporting• Excellent Customer reviews (BBB accredited, 0 complaints in 3 years)
Potential threats:• Large amount of services may hinder management focus on PRL service• Compete in Retail, Pharmaceutical, and Technology reverse logistics industry
Where can Qualanex possibly leverage capabilities?• Better software?• More focused customer service• More services for a better price• Specialization in Pharmaceutical Reverse Logistics
• Marketing strategy?• Value Prop?
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PharmaLink Inc. – Competitor findings
31
Advantages:• Search Engine Optimization• Primary business is PRL• Advertises free shipping and online processing for wholesalers• Automation
• Speed and accuracy• Cost savings
• “Largest Information Database”• Pride themselves on innovation• Manufacture prescription vials
Disadvantages: • Rely on technology as their competitive advantage• Lack of customer services from high level of automation• Lack of information regarding warehousing or distribution
How can Qualanex leverage resources and capabilities:• Get ahead of them on the technological curve• Leverage customer service• Look into PharmaLink’s distribution network
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Stericycle – Competitor findings
32
Advantages:• Well known brand name for healthcare/medical wastes• Does pharmaceutical disposal and returns• Seamless and “Fastest payment of returned product in the industry”• 75% of entire return payment is issued within 12 business days• Advertises free shipping and no hidden costs• Online portal for tracking and getting reimbursed• Good website with option for getting a free quote
Disadvantages: • Doesn’t tell how long it takes to get back the other 25%• Bad customer reviews (Not BBB accredited, 267 complaints closed in last 3 years)
How can Qualanex leverage resources and capabilities:• Q-osk• Leverage customer service• Determine actual cost by talking to a client
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Inmar – Competitor findings
33
Advantages:• Real-time commerce platform for connecting retailers, manufacturers, pharmacies and service providers• Multiple awards won (displayed via website)• Good website with blogs, articles and client login• Operates in Mexico and Canada besides US• Acceptable customer reviews (Not BBB accredited, 14 complaints closed in last 3 years)
Disadvantages: • Price?• Not focused to only pharmaceutical reverse logistics
How can Qualanex leverage resources and capabilities:• Q-osk• Leverage customer service
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Competitor Research Questions & Takeaways
34
• Compare survey results to competitor analysis:• Where are competitors meeting/exceeding customer expectations? Missing customer
expectations?• How can Qualanex learn from their competitors?• Where can Qualanex leverage their capabilities against competitors?
o Why is Qualanex technology and customer service better?
• Study competitors’ online presence and design Qualanex’s plan around those best practices.
• Use analysis to refine sales and marketing goals. For example: why is Qualanex able to provide better customer service compared to Genco?
• Targeted customer acquisition from weakest competitors. • Can Qualanex win over customers who prefer the Qualanex offerings?
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Table of Contents
35
Financial analysis and key findings
Customer survey
Competitor research
Website ideas / suggestions
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Website Component
Customer Benefit
Qualanex Benefit
DESIGNColors, look and feel, visual
attractiveness
• Visually pleasing • Experience improved• Desire to dig deeper into
Qualanex services and company offerings
• Increases frequency of use• Attract new customer• Create competitive advantage
through perception of professionalism
LAYOUTOrganization of contents,
how pages link to one another in logical manner
• Less confusion• Logical connection to the
material and content
• Allow Qualanex customers navigate easily
• Lessen need for investment in Qualanex resources
CONTENTInformation actually
communicated to customer, beneficial information that customers use in decision-
making processes
• Increased trust in Qualanex Brand
• Confidence in reliability of information
• Higher dependence on website to deliver all relevant information about Qualanex
• More efficient process to deliver relevant information about Qualanex service offerings
• Streamline processes of communication
• Increased control over flow of relevant company information
We believe a revamp of the Qualanex website will add value to the company’s marketing efforts
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• Login• About company• Differentiators & Competitive AdvantageHo
me Pag
e• Current Customers• New Customers• Service Offerings• News/Information
Links & Drop Downs
• Login Portal• Online Form AccessSecond Level Links
Third + Level Links
Type
of i
nfor
mat
ion
need
edBROAD
SPECIFIC
Most Important & Most Frequently Used
= Fewer clicks to
Access
We suggest a multi-level website layout for the future website