Tapping on unexploited low competition market with the company’s core strengths – Key to increase profit margins


With 19 years of establishment, our client for this project is a leading distributor for medical devices under famous brands like Baxter and Cardinal for the healthcare and transportation industry. The company offers a range of products, from disposable devices to equipment used for surgeries.  Based in the United States, the company serves almost 500 hospitals worldwide.


With more than thirty years of sales experience, Joe Karrellum understands that his team of ex nurses can be the bridge between his company and his corporate clients leading to soaring success in order to increase profit margins. That’s also why he knew his company had a big problem on its hands. “When I started from scratch, we (my shareholder and I) had to show the world that we are providing the closest to heart services to the doctors in hospitals by understanding their needs and concerns,” says Karrellum, now the company’s CEO.

As Karrellum points out “My team and I really need a solution to help us better grow our distribution services with existing resources.”

There are tons of work to manage the inventory and the regulations to hold the inventory to prevent the expiry of the delicate disposable medical devices while keeping the sales stocks available upon. It would fall far short and jeopardize his success. Karrellum began to search for a customized business strategy that would have an immediate impact on the company. He had been taking lots of training and engaging an accountant to manage these. Joe did not understand the jargon as he has been in healthcare nursing all his life. The accountant had managed to keep the accounting system up and running. There is no forward-looking information to make proactive decisions. Every day has been fire fighting for him and his active shareholder.


After considering the value against the cost of investment set by various options, Karrellum selected the Profit Builder system from Crestpoint Consulting, personalized for his company with tailored-made business strategy- the right medicine.

There is one new Twitter post tagging #profit in every 5 minutes while #business in every 5 seconds. Karrellum realized that he needed to be at the top of the game and had to break through the stagnant stage of his business. His family and his employees depend on him. He was determined to set things right.

Crestpoint Consulting stepped into the picture and reviewed the current working process with Joe. The experts in his industry has identified a few areas: his reordering system back to back between customers and suppliers, his warehousing and delivery system.

Order System

New contracts between the suppliers are renegotiated for Joe’s advantage. Demands for the products are sharpened with a trend analyzing system just for his medical devices’ distribution company.

Regular feedbacks have been collated from his direct customers while doing the parallel runs on the system. Building a relationship with those customers is of paramount importance. Where there are spikes in sudden demand for products like more surgeries scheduled, suppliers are activated to deliver without extra cost.

 Warehousing & Delivery System

The warehouse had been in a mess. With the regulation on the proper storage and administration, there had been no compliance without proper disposal of expired or damaged medical devices. The storekeeper and delivery personnel do not know where to received and which area is the stocks being set ready for delivery. Delivery schedules are not fully adhered to and Joe had received complaints from his top customers. This was one of his top worries.

Crestpoint Consulting set up a list of store administration and implemented the warehousing system for the storekeeper and delivery personnel. They are trained and optimized for more efficient handling of usual and contingency situations.

The delivery schedules are better planned on the routes, saving petrol costs and freeing more time on the delivery operations. Staff morale has improved dramatically.

Unexpected Increase in Service Niche

 Opportunities knocked at Joe’s door when his competitor Bob placed a large order to be delivered to important clients.  This set Joe thinking really hard. This could be a good opportunity to work on since the delivery staff has more free time. After running through the strength and worked at the areas of improvement, Joe is really to take up this piece of the pie. Soon, the delivery services niche becomes a sizeable activity as credibility. Trust has been established over time. Crestpoint Consulting suggested extending globally to Asia which Joe considered seriously before extending his wings to set up subsidiaries with positive outlook reflected in the customer feasibility analysis results.


Joe was able to increase the volume of leads generated in more than 27X and reached an ROI (Rate of Investment) of 5. That means that for each 1 dollar invested the client got a return 5 times higher. On-time delivery % has improved from 67.3% to 100%.

Crestpoint Consulting helps medical device distribution firm diversify services to increase profit margins

Crestpoint Consulting hasn’t just helped Joe to build a successful business with more of his Return on Investment (ROI) and 30% time has been freed up for more opportunities that increase profit margins.


About Crestpoint Consulting

Crestpoint Consulting produces immediate business results using our ProActive Profit Thriveprint & highly trained Professional staff to create lasting profits results that elicit long term business potential and continuity for CEOs, stakeholders and employees We utilize our simulators, putting greens, and hitting bays to customize a solution for each and every client, Achieving more than 5X Return on Investment (ROI).

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