In MYPRODUCT1 I detailed how I started my collaboration with Veteco as builder and commercial manager of the new pet food distribution business unit (Royal Canin), business that generated 2 million euro additional annual turnover for the company.
During 2008-2010, I fully assured the management of the Royal Canin business unit, with no involvement in the Veteco’s core business (distribution of veterinary products) because my collaboration with the company exclusively targeted in that period the construction of the new business unit.
I questioned myself later whether the company’s operational activities could have generated superior results in case of a synergetic integration of the two divisions as both divisions targeted the same customer segments (cabinets, veterinary pharmacies, pet shops).
Throughout the entire period of the Royal Canin division, the operations in this division were completely separated from Veteco’s core business operations and I refer here to: independent sales team, promo activities, sales model – order picking – delivery, targets, bonus system, working procedures, business plan, marketing plan, etc.
The strict delimitation of operations and functions per product segments was a decision taken by the company’s management, even if the same customer of the company was visited today by Veteco pet food sales agent for promotion and sale of Royal Canin and maybe in the next day the same client was visited by Veteco sales rep in charge with veterinary products for promoting and selling Frontline Combo for example.
The main reason behind this decision was that in the veterinary division it was considered compulsory for sales reps to be veterinary graduates or former veterinary practitioners, while on the Royal Canin division sales agents were not supposed to compulsory have this education / academic profile.
The results recorded in 2008-2010 on the Royal Canin division were worthwhile, contributing significantly to double the total turnover registered by the company.
In parallel, Veteco’s core business experienced strong consolidation.
Between the two divisions there was no operational and commercial synergy in the above-mentioned period.
The way the company acted during that period clearly generated 1 + 1 = 2 as results.
As there was no synergy between the two divisions at operational and commercial levels, the company perhaps loosed the opportunity to obtain 1 + 1 = 3.
Ask yourself if the synergy between your company’s activities can bring you superior results. Ask yourself how you can make 1 + 1 equal to 3.
Notification: MYPRODUCT reflects my real professional experience and expertise as well as my subjectivity. I do have a profound respect for all the companies I collaborated to and for all the people I worked with. It is not my intention to approach any sensitive, confidential or offending information related to companies, projects or people. If you the reader deduct or recognise companies, projects or people in my examples, I kindly ask you to respect MYPRODUCT and my professional and ethic approach and to not share any detail, information, situation, name, company.