SAP Commissions
Commissions in the MedTech Industry

What experience in the MedTech industry does SANDS Partners have?

One of our top 3 customers is a MedTech enterprise that operates all around the world, including North, Central, and South America, Europe, and Asia. They have established regional centers, manufacturing facilities, customer fulfillment centers, and scientific institutes. Hence, our journey at SANDS Partners started in the field of MedTech. Our portfolio includes several other companies in this industry, ranging from small to enterprise organizations. 

So you are able to compare this industry with others. Does MedTech differ in terms of setting commissions and sales plans?

It differs from others due to its unique nature and regulatory considerations.

Given its direct impact on human life and health, MedTech is subject to strict regulations at every stage, from the development of the device to its usage for individual patients.

When it comes to commission plans, several important factors need to be taken into account. The complexity of the devices is a key consideration, as they often involve the integration of various disciplines such as electronics, mechanics, software, and biology.

Additionally, when medical devices are bundled with further services, software, or maintenance packages, the pricing structures become more diverse. Determining commissions for bundled deals requires a thorough assessment of how the value is distributed among the different components. Companies must carefully consider the relative value contributions of each component, take into account customer preferences, and analyze market dynamics to ensure fair and effective commission plans.

What kind of client is MedTech?

Every industry presents its own unique challenges and entails specific restrictions and requirements, often including legal obligations. Furthermore, our work involves dealing with finances, an area that demands meticulous accuracy and precision. We approach each implementation with utmost seriousness and ensure that our entire team is well-prepared.

We understand the importance of meeting industry-specific demands and complying with legal regulations, while also maintaining a high level of accuracy and precision in our financial operations.

Do you see any trends in this particular market at the moment?

MedTech, even more than other market segments, is subject to volatile market conditions: from coronavirus to the war in Ukraine, from global recession to high inflation rates. The stocking of biotech materials is a tricky thing, so supply and demand heavily impacts even mid term perspectives in this business. 


What are the biggest challenges of your clients in this industry?

This discussion has already touched upon the issue of medical devices packaged together.

Another significant aspect to address is the presence of diverse sales channels, including direct sales teams, distributors, and resellers. Each channel may have unique commission structures and sales hierarchies, necessitating precise inclusion in commission calculations. Additionally, regulations and compliance remain a crucial concern. The industry must navigate strict regulations concerning pricing, transparency, and fair competition, which pose substantial obstacles to product development and sales. Consequently, commission calculations must adhere to these regulations to ensure legal compliance and maintain ethical business practices.

How much impact do the MedTech  industry’s restrictions have on the creation of a sales plan?

The impact can be quite significant. It can be greatly influenced by various restrictions that differ from region to region. These restrictions encompass regulatory obligations, pricing regulations, transparency guidelines, and fair competition policies. It is crucial to incorporate all these requirements into the plans and commissions. Typically, this involves developing and implementing complex formulas that are tailored to automate the calculation of employee commissions, while ensuring compliance with all necessary regulations.

Is it difficult to create a component responsible for the quick and trouble-free calculation of commissions for a seller from the MedTech industry knowing all these requirements?

Preparing individual modules requires careful attention and can be time-consuming, even for experienced consultants. It involves considering all the system requirements provided by the client and often necessitates developing innovative approaches to address specific needs within the system. For instance, we once had a customer who requested a unique feature – when a sales target was achieved, the seller would receive a special “you’re a rockstar” kudos. We successfully implemented this solution, which added an enjoyable touch of recognition upon reaching their goals.

At SANDS Partners, we work in teams consisting of approximately three consultants, complemented by a project manager if required. This team-oriented approach allows us to fully harness the power of collaboration and teamwork, resulting in more streamlined and efficient work processes. By actively exchanging ideas and leveraging collective expertise, we can swiftly identify and implement solutions to overcome the challenges we face. 

Let’s face it, as consultants, our primary responsibility is to find effective solutions for a wide range of challenges. By adopting our collaborative team approach, we are well-equipped to tackle these challenges head-on and deliver successful outcomes for our clients.

When creating sales plans for this industry, are there any best practices around the world? Any recurring solutions regardless of country/region?

The common sales team denominator for MedTech companies is that the sales process must be transparent and (to the maximum extent possible) improve the well being of patients. This means that sales plans cannot be based only on revenue or profitability, but other factors must be taken into account too. Qualitative KPIs are used to a large extent in this segment.

Bart Strożek

Leader of the organization, coach, mentor, businessman. He is a strategic planner for large organizations and an operations leader executing strategy. He gained experience with giants such as Procter & Gamble, Luxoft Poland, IT Kontrakt, and SAP, and in 2019 he set up his own company specializing in consulting and implementing ICM and SPM systems.

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