M-W Orthopedic Company's Channel Management Strategy And Implementation

How to set up an effective Channel net is a very important part to form an integrated marketing strategy of a company in medical device industry.The special characteristic of medical device industry is related to:The products adopted by doctors generally are highly professional; while two sides on products safety&effectiveness are concerned by the end-users (patients). So, related national official departments have to monitor the products circulation segment closely to ensure the product traceability. At the same time, how to make the products running high efficiency and being traceable, easily managed is the core competency of an enterprise as well.This paper analyzed the macro background of domestic medical industry; introduced M-W Orthopedic Company on channel management model, especially on VMI (Vendor Management Inventory) model which is a creative adoption in orthopedic industry to support dealer management, inventory effective management, etc.; analyzed the benefits and disadvantage of this model applying. The paper discussed the key points&limits on actual operation level of VMI adopted in orthopedic industry, and forecasted the possible changes on channel strategy in orthopedic companies in medical industry.The writer thought that M-W Company helps the dealers relieve the pressure on capital, inventory management, etc. by adopting VMI model, pushing the dealer focusing on maintaining the customer relationship; technical support, improving service quality, upgrading market competency level. It is meaningful at current poor economic environment. Meanwhile, VMI model adoption requires manufacturer to improve the management level on logistic management, inventory rolling forecast, IT system, SOP (Standard Operation Procedure) design&management, dealer management, clinical customer management&support areas. From the current experience we got, this model could help dealers enlarge the market coverage, and help manufacturer to "flatten the channel", at the same time, it is in step with governments medical reform orientation.The paper probed the channel maintain issues, include channel conflicts handling; incentive&monitoring; provide the theoretical basis on channel development and construction in orthopedic business.