Direct vs. Distributors








Depends on the division, spine and trauma have some direct branches and recon has tried a few as well. The direct model gives you more control and ensures al focus on your product line, but there is a large cost associated with the direct model. In the end, the distributor model usually offers the best ROI. Many companies have flirted with the direct model and run back to the distributor model when P&L's get out of control.
 



I didn't think it was possible. I have been looking at the sites on Cafepharma for a while mostly for the comedic value. Here we a have a reasonable response from someone from someone who actually understands our industry. I don't know who you are, but I would like to electronically shake your hand. Well done!
I have been in this industry for a while and this person understands this business. Zimmer started a direct sales force (3rd time) to take advantage of the "market disruption" with the Synthes merger. This author has summed it up perfectly why it will not work. Someone soon will hold up a balance sheet on what it has cost and what the ROI is and that will be the end of it......again
A sales force MUST have the freedom and ability to control its OWN OPERATIONS!! You CANNOT have an organization and DEPEND on the distributors to carry out day to day operations
 


















I believe Zimmer is direct in San Diego, Vegas, SLC, Western PA, and Kansas City. If #'s are good as well as the P&L (peace and love) there will be more in the future. If not, these General Managers will become independent once again. Going direct seems to be a trend in the industry and we will see if this sticks or not.