Executional Excellence remains paramount in the field of Commercial Operations, which poses numerous challenges, specifically for field representatives. We have asked Georg Alscher, Team Lead for Sales at Portatour, how route optimization tools support sales representatives to navigate complexities related to activity planning and execution, enhancing both efficiency and effectiveness.
Karsten: Thank you for taking the time for this interview, Georg. Let´s get started right away with our first question: How does effective route planning impact the number of client visits and overall sales performance of field forces in the Pharma and Medtech industries?
Georg: Thank you for having me. The effectiveness of route planning significantly hinges on the quality of the underlying CRM data. A sophisticated trip planning system is capable of optimizing your visit schedule, leading to substantial savings in both miles driven and fuel consumed. However, it's important to acknowledge the occasional challenge of encountering empty trips, which may arise from gaps in data, such as missing business hours. Despite these hurdles, the implementation of a proficient route planning tool can still empower sales representatives to achieve up to a 20% increase in client visits compared to traditional manual scheduling. This optimization not only saves considerable planning time but also enhances overall field efficiency.
Karsten: Could you share a compelling case study where route optimization significantly improved a client's operational efficiency within the Pharma or MedTech sectors? How did it impact their sales strategy and bottom line?
Georg: I highly recommend exploring the enlightening success story of KS Medizintechnik, which illustrates a profound transformation in their operations. Initially bound by fixed bi-weekly schedules that left no room for unplanned client interactions, their approach changed dramatically. They transitioned to a system of dynamic scheduling, enabling them to respond instantly and flexibly at the mere press of a button. Jörg Heinser, Director of Marketing and Sales, shares his insights on the transition, noting, 'Looking back to the times before we adopted this dynamic scheduling tool, our previous fixed schedules made us undeniably rigid. This rigidity meant that any unplanned calls could disrupt our plans for days, causing us to miss out on engaging with many of our customers.' This move towards a more adaptable scheduling strategy marked a significant improvement in how they could manage and respond to the unpredictable nature of customer needs.
Karsten: How do route planning tools incorporate 'next best action' recommendations to meet the dynamic needs of Pharma and MedTech?
Georg: The concept of 'next best action' can encompass a variety of activities, such as emails, phone calls, or face-to-face (F2F) visits. Our route planning focuses specifically on optimizing for visit-based activities. To integrate these 'next best action' recommendations effectively, we employ strategies like prioritization or direct scheduling. By incorporating these actions into the system, our algorithm can intelligently sequence them, ensuring that each action is timed optimally for maximum impact.
Karsten: What challenges have you encountered in implementing route planning solutions for Life Sciences, and how did you overcome them? Can you share examples of specific challenges and solutions?
Georg: There are two main challenges which can be highlighted:
Legacy Systems: The maxim 'Never change a running system' reflects the resistance often encountered when attempting to update systems that have significantly evolved over the years. The challenge lies in thoroughly assessing and integrating the extensive data managed by legacy systems, to ensure it can be effectively utilized by contemporary routing solutions. This meticulous process is crucial for preserving data integrity and enhancing utility.
Established Sales Practices: Sales representatives, who are intimately acquainted with their territories, might show skepticism towards schedules generated by routing algorithms, preferring to rely on their own experience and knowledge. Overcoming this requires a careful and empathetic approach. A gradual introduction of the new system, along with the establishment of peer support groups, have proven to be effective strategies for facilitating acceptance and encouraging the use of new tools.
Karsten: What specific strategies do you employ to train sales representatives on using route planning tools, and how do you overcome resistance of representatives to ensure high adoption rates?
Georg: Effective change management strategies are crucial for the successful implementation of new technologies, particularly in the context of route planning tools:
Key Principles of Change Management:
➤ Team Preparation and Clear Communication: Management plays a crucial role in preparing the team for new implementations, requiring transparent communication about the reasons and methods for changes. Without strong management endorsement, projects are more likely to encounter resistance and may not achieve the desired acceptance. It is also vital to listen to and address any concerns or objections team members may have.
Adopted Best Practices:
➤ Create Supportive Peer Networks: Establishing groups where team members can offer each other support and share experiences promotes a collaborative learning environment.
➤ Leverage Key Influencers: Identifying team members who are naturally inclined to support and mentor others can accelerate the adoption process.
➤ Reward and Recognize Achievements: Acknowledging successes, such as improved metrics resulting from the new system, with rewards or recognition can boost motivation and demonstrate the value of the changes.
➤ Communicate Benefits Clearly: Explaining how the new system reduces workload, such as cutting down on planning time, helps team members understand the direct benefits to their daily tasks.
➤ Promote Exploration of New Methods: Encouraging the team to adopt new approaches and move beyond established practices fosters an environment of innovation and continuous improvement.
Implementation Tactics:
➤ Engage Through Practical Training: Offering live training sessions that use real-life scenarios and include follow-up recordings ensures that team members can see the practical application of new tools and revisit the material as needed.
➤ Interactive Learning Opportunities: Providing Q&A sessions, with each query turned into a short, accessible clip, helps demystify complex issues and facilitates easier understanding.
➤ Management's Active Role: It's essential for management to fully engage with the new system, both to lead by example and to grasp the tool's functionalities and benefits thoroughly.
➤ Access to Support Resources: Making support resources available directly within the system ensures help is always at hand, promoting user confidence and autonomy.
Karsten: Sustainability is becoming increasingly important in every sector. Can you elaborate on the environmental benefits observed from implementing route optimization? For instance, have you quantified the reduction in carbon emissions or fuel consumption for any of your clients?
Georg: While our agreements with clients prevent us from sharing specific data, I can confirm that the implementation of our system typically results in a mileage reduction of between 5 to 15%. The impact on carbon emissions and fuel consumption varies with the vehicle type. Although the adoption of electric vehicles among our clientele is growing, it remains modest in comparison to conventional vehicles. This shift not only demonstrates a tangible improvement in operational efficiency but also a positive stride towards environmental sustainability.
Karsten: How does the adoption rate of route optimization tools in Life Sciences compare to other industries, and what factors contribute to this trend?
Georg: Adoption rates in this industry are lagging behind others, seemingly because the imperative to optimize schedules for higher field force productivity combined with reduced mileage and fuel consumption isn't pressing. High profit margins may lessen the urgency to improve operational efficiencies.
However, the situation shifts dramatically when companies face a reduction in their sales force or encounter delays in launching new products. In such scenarios, the importance of route optimization swiftly comes to the forefront, proving to be a critical tool in navigating these challenges and revitalizing productivity.
Karsten: How crucial is integrating CRM systems with route planning tools for field forces in these sectors, and could you highlight specific, tangible benefits of such integration?
Georg: Effective CRM integration is indispensable. The efficacy of route planning hinges on the quality of underlying data. A meticulously maintained CRM system forms the cornerstone of any successful sales operation. Seamless integration between the route planner and CRM streamlines reporting and planning processes, markedly reducing the time required for these tasks. This synergy not only furnishes management with precise data for enhanced decision-making but also consolidates route planning and reporting into a single platform, eliminating the inefficiency of toggling between applications. Automated synchronization ensures CRM accuracy, either through background processes or during off-peak hours. For sales representatives, the tangible advantage lies in centralized access to information, significantly cutting down the time devoted to administrative reporting.
Illustration: Key parameters for Instant Optimal Route Planning
Karsten: Could you share the cultural or structural challenges and successes you've encountered while implementing your routing solution across different global regions?
Georg: Our route planning service has a global footprint, including Asia, although its full rollout across the continent is still in progress. Cultural differences significantly influence the acceptance, usage, and speed of implementation of our services. In Germany, the implementation process can be tempered by works councils focused on protecting employee data and rights, yet our strict adherence to GDPR compliance alleviates any concerns. On the other hand, American multinationals with IT departments based in Asia present a unique challenge of synchronizing meetings across various time zones.
Karsten: Georg, thank you for the enlightening discussion. Your insights have highlighted the significant impact of route optimization on operational efficiency, particularly in the Pharma and MedTech sectors.
In summary, we can say that integrating these tools with CRM systems not only enhances productivity and environmental sustainability but also adapts to the changing sales force and market dynamics. Effective change management strategies are necessary to ensure high adoption rates of new technologies, including engaging training, fostering peer support networks, and emphasizing the benefits of route optimization.
Xeleratio Consulting GmbH
We help Life Sciences executives improve sales performance with innovative best-in-class Business Excellence tools and methodologies . Expertise in Business Excellence has been gained with over 12 years of working in different global and regional roles in the Life Sciences industry.
Feel free to reach out if you'd like to discuss this or any other topics related to Commercial Excellence. See all articles on Xeleratio Consulting Blog
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