Invacare Supply Group: â€˜Doing the right things’
Invacare Supply Group’s efforts to help providers boost cash sales and use drop shipping to decrease delivery costs appear to be catching on. Check out these numbers:
In 2006, the Milford, Mass.-based company drop-shipped 65% of its orders. That increased to 80% in 2007.
Likewise, the company’s sales in 2007 increased 12.6% to $257 million, compared to $228 million in 2006. Company officials had expected a 9% increase. “For us, that confirmed we are doing the right things,” said Doug Harper, vice president and general manager.
Finally, in the first quarter of this year, providers ordered 1 million—the most ever—of the company’s product flyers designed to advertise retail items. “People are paying attention to cash sales,” said Greg Bosco, director of merchandising and marketing. “We have 100 customers ready to sign up for next quarter. It’s going to be really big for us.”
These numbers didn’t materialize overnight.For the past 18 months, ISG has made a major push to help providers build cash sales to offset reimbursement cuts. The company’s “tool chest of solutions” includes store planograms; a catalog of hot-selling cash sale items; direct-mail flyers; and educational and product information for ostomy patients (ISG plans to roll out similar literature later this year for people who have diabetes or who are incontinent).
“We can’t go to someone and say, â€˜We have the total solution,’ but we do think we can provide things to make their business healthier,” Bosco said.
ISG’s customer base includes 14,000 HMEs and independent pharmacies.
In other news: ISG outgrew its old headquarters and moved in January to a new 35,000-square-foot facility in Milford. HME