Tamro is Sweden’s only independent pharmaceutical distributor. Every day, they supply 1,400 pharmacies across the country with medicines and health care equipment. Tamro is part of the PHOENIX Group who ensures that medicines reach the right place at the right time in 27 different countries with the help of its 37,000 employees and 163 distribution centers.
Why Tamro chose the Howwe Way of Working…
Tamro needed change in order to reach the goals that were set. Being a key player in the pharmaceutical industry, Covid19 had an additional impact with increased pressure in all distribution channels and higher than normal sick leaves in logistics.
Tamro already had system support for their daily operational control, including LEAN, and followed up on goals via traditional tools such as Excel, Power BI & CRM. However, tough times require new measures, and the company’s leaders had to sift from acting reactively to proactively in their daily management and follow-up, using a new and modern goal steering tool.
The management team identified a few focus areas to address using Howwe;
– Increase proactive sales to pharmaceutical companies
– Sharply reduce the cost base
– Connect the daily operational control within the logistics centers to the company’s overall goal management.
Let’s take a look at the results they achieved with Howwe.
Return on Investment calculated on EBIT vs Investment: 25x
Management MIG: Increase revenue by 30 MSEK.
Goal 17.5 > Actual 20.84
Sales increase 144%
Sales Department MIG: Win new and profitable customers with annual revenue of 20 MSEK. Goal 11.67 MSEK > Actual 16.84 MSEK
How do you succeed as CEO with the company’s Most Important Goals –
We use Howwe as the goal steering tool in our daily work in order to prioritize and focus on the right activities to achieve our budget and our most important financial goals. Howwe has clarified our focus, increased the individual’s responsibility and makes it easier to create a common view and understanding of what is important.
CEO, Tamro Sweden
Three disciplines of acceleration
Tamro reached the results with the Howwe® Way of Working
Prioritize & Align
The management agreed on the Most Important Goals and then aligned the organization to support the overall most important goals in order to create focus, accountability, and free up time.
With a quick and easy digital onboarding, the organization was quickly up and running.
See some of the activities Tamro chose to accelerate growth – and the result they achieved – below.
CEO and management team noticed an increased commitment and a new willingness to share the journey towards the common goals. Seeing the progress, and creating transparency created great accountability but also increased team spirit.
Tamro’s Key Activities
Result of weekly activities vs historic
Measuring the activities and the impact they have on the most important goal clearly proves the acceleration of growth. Tamro’s sales department achieved the following acceleration on some of their chosen activities compared to their historic results.
Booked 1st meeting with customer/ stakeholder
Booked meeting with existing customer – present solution proposition
Send quote – new customer
Booked 1st meeting with customer/stakeholder
Booked meeting with an existing customer – present solution proposition
Send quote – new customer
Additional impact on the organization
- Increased connectivity of the daily operational control of the logistics centers with the company’s overall goal management – eNPS
- The leaders are more proactive in their daily management and follow-up
- An increase in the individual’s responsibility with higher accountability
- Management feel that it is easier to create a common view and understanding of what is important
- Doubled operating profit 2019 vs. 2020 – Increased profit by SEK 60 million