Edition: July 2002 - Vol 10 Number 07
Boca Raton, FL--
To know where you're going, it's important to know where you came from. That's how Henry Schein President and CEO Stanley Bergman kicked off the company's 2002 national sales meeting at the BOCA Club & Resort June 6-9.
Running the business today means carrying on a dream that started long ago in Queens, NY, said Bergman. When Henry and Ester Schein started their business 70 years ago, they were committed to competitive pricing, excellent quality products and exceptional customer service the same principles we adhere to today.
With a meeting theme of Mission Possible Bergman urged his sales and management team to remain committed to the company's rock-solid principles. Over the past ten years we've grown twelve-fold and increased our market cap from $40 million to over $2 billion, said Bergman. And we have a tremendous future. While we are pursuing an aggressive and ambitious plan, it's very doable.
Today, Schein stands as the largest distributor serving the medical and dental office markets, processing over 8 million orders per year. And according to Bergman, the company has transformed markets. We've been a bellwether for change, he said. In the 1960s we produced the first catalog for office-based practitioners. In the 1970s we added a mail order component. In the 1980s we automated the supply chain, to better serve our customers. And in the 1990s we added field sales consultants, creating a model that was unique in our ability to serve the customer.
While Schein has used acquisitions to fuel its growth in the past, the last two years have produced 33 percent growth without any acquisitions. In fact, Schein is growing at nearly three times the industry average, said Michael Racioppi, president of the Medical Division. The market grew this past year at approximately 5-7 percent while we grew 18 percent, he said. Why? For a number of reasons. We have the industry's best sales consultants. We have aggressively added new Caligor field sales territories. We have outstanding leadership with our sales management team. We receive excellent guidance and support from our vendors. And we have the industry's best distribution capabilities.
Both Bergman and Racioppi commented that it doesn't stop there. We're in the right place at the right time, said Bergman Demand is increasing. The baby boomers are growing older, procedures continue to migrate out of the hospital, and as capitalism spreads across the world, access to quality healthcare is in demand. And as a worldwide distribution company, we have the ability to capitalize on these trends.
The remainder of this year will be busy for the company, said Racioppi. We open our new distribution center in Jacksonville, Florida, in July, which will give us the ability to serve over 80 percent of the physician offices in the United States on a next-day basis. In addition, we are securing even more flu vaccine than last year, when we sold 15 million doses. It is also our intention to expand our portfolio of pharmaceutical products that customers can only get from our sales reps. Tetanus is an example of this type of product.
Racioppi expects to add many new Caligor field sales reps in areas Schein currently does not serve. Our new sales reps, like you, will be given the tools necessary to earn more commission dollars, said Racioppi. This is the place you can achieve your financial goals and live out your dreams.
Using the Mission: Possible theme, over 700 attendees were treated to an opening Mission Possible video starring president Racioppi and members of his senior staff. In addition, 55 different vendors gave educational presentations. The meeting wrapped up with a Harley Davidson-themed party, complete with lobsters, a raw bar, and a variety of delicious desserts.
Henry Schein's Rep of the Year: Rich Turner
Richard Turner and his wife, Julie, started PRN Medical in 1985 in Indianapolis, IN. By 1995, they had grown their distribution business to over $15 million in annual sales. In 1995, Henry Schein contacted the Turners to discuss the possibility of a merger. The following year, Rich and Julie decided to sell PRN Medical to Henry Schein.
Rich stayed on as president of Caligor-PRN Division until late 1999, when he decided to resign his role as president and get back into the trenches doing what he loved selling. In early 2000, Turner was awarded an exclusive agreement as the nationwide med/surg distributor for one of Caligor's largest customers. That same year, Turner grew his other business 128 percent. Congratulations Rich!