Vermed, Inc. is a company that manufactures medical electrodes and provides other related products and services. Vermed enlisted the support of Amelioration Incorporated to improve sales revenue and assist with business growth through the application of Lean Six Sigma process improvement. At the time of the engagement, Vermed consisted of 52 total employees and had roughly $13M in gross annual sales.
Prior to engaging Amelioration Incorporated, Vermed had experienced pricing pressure from competitors marketing brands that were inferior in quality to the Vermed product. Additionally, some larger competitors were creating switching costs by bundling the medical electrode with much more expensive products and services. Vermed had responded by reducing prices, offering rebates, and restructuring their internal sales organization. While these actions provided some limited relief, Vermed still sought ways to grow sales revenue.
Vermed, Inc. employed Amelioration Incorporated to lead a five-phased engagement to evaluate their sales process and make for improvement:
- During the Define Phase, Amelioration Incorporated identified the specific project that would have the most positive impact on the Vermed sales process
- During the Measure Phase, Amelioration Incorporated determined Vermed’s current process capability and its capacity for improvement
- During the Analyze Phase, Amelioration Incorporated identified the critical factors within Vermed’s sales process that contribute to increased sales
- During the Improve Phase, Amelioration Incorporated developed an improved Vermed sales process based on adjusting the critical factors determined in the previous phase
- During the Control Phase, Amelioration Incorporated developed a metric scorecard for the Vermed sales process to insure that the improvements will remain in place going forward.
- Cause and Effect Analysis
- Process Mapping
- Measurement System Analysis
- Voice of the Customer Analysis
- Capability Analysis
- Control vs. Technology Analysis
- Chi-square Analysis
- Binary Logistic Regression Analysis
- Dotplot Analysis
- Scatterplot Analysis
- Design of Experiments
- Financial Analysis
Amelioration Incorporated’s recommendations identified how Vermed, Inc. could improve the company’s sales process and increase sales revenue.
Conservatively, Amelioration Incorporated’s recommendations were worth in excess of $675K per year in additional sales revenue to Vermed, representing an annual return on total fees and expenses paid in excess of 1,135%.