Interviewee: Ricardo Ganem, CEO for Perrigo Mexico
Produced by: Carmenza David, Operations Director for WDM Group (Latin America - Healthcare)
Translation by: Rafael Tablado, Associate Editor
Entrepreneurial front office
Perrigo Mexico’s leadership is derived from a team effort, and is achieved in every single area in the company from human resources, competitive procedures, equipment and machinery, to the front office and management team.
Atop this operation is Ricardo Ganem, current CEO for Perrigo Mexico. First hired in August, 2009, Ganem started as chief commercial officer, delivering an outstanding performance in sales and marketing. Two years later, thanks to his strategic entrepreneurship, he was appointed CEO --his position during the last three years-- leading the company to its vision of commercial prosperity.
“A trait which most defines us is our commitment to quality. We manufacture a product with high standards to be sold at affordable prices, which sums up our company’s philosophy by becoming our own decision-making policy, which we experience day in and day out,” said the executive.
Perrigo Mexico goes beyond the plain subcontractor role to strengthen their clients’ brands, providing them with commercial consultancy and research as well as marketing strategies.
“We treat and approach clients as if they were our own brands, and we involve ourselves by creating and implementing business strategies to increase their competitiveness,” he said.
The company’s competitiveness displayed abroad is a magnet for multinational companies, as shown by their ability to live up to the “quality and affordable healthcare” motto, introduce quality products into the market at affordable prices, earn new customers everyday and build their trust and loyalty towards the brand.
Industrial expansion and internationalization
• Mexico: The company seeks domestic consolidation for the store brands market by remaining at the top of that category through custom production for retail chains' private brands. The company's consolidation also encompasses the pharmaceutics manufacturing operation by supplying the public health sector with high quality products and engaging in subcontractor commitments with the area's top laboratories by late 2014.
• Latin America: Since 2011, the company developed an international distribution network focused in Central America. These efforts' results started paying off earlier this year with projections to grow farther south towards Colombia, Venezuela, Chile and Peru.
• Perrigo worldwide: The company's strategy to achieve exponential growth and global expansion includes mergers, acquisitions and consolidation of existing markets, such as India, Israel, Europe, Australia and China, among others.
The human team at Perrigo Mexico is considered the company's top value; keeping the staff's well-being in optimal conditions is always a priority. These efforts translate into talented, properly-trained, motivated, pro-active employees. Health professionals in the company are constantly driven to improve via special training and rewards since their hiring through programs established with educational institutions.
Due to its presence in different countries, Perrigo develops constant talent exchange programs within its branches worldwide.
"We are committed to providing our employees with the knowledge made possible only by this kind of experiences; and not only with our staff in Mexico, in every country we are present we have this competition programs, intensive surveillance for each position and thoroughly-developed training plans," says Ganem.
Automation up to global standards
As part of continual development, Perrigo Mexico's plant introduced automation and network systems to improve every procedure, which are based on corporate standards and under regulation from health authorities.
Regular updating programs are run by Perrigo Mexico to increase productivity, reduce risks and for quality assurance in every operation. Cutting-edge technology and equipment has been introduced in every plant and laboratory, bringing innovation in control quality and staff training.
"I can assure that our plants in Mexico are top of the line," Ganem says.
The company's supply chain is designed depending on clients' demands, subcontracting agreements and distribution plans (including for public health institutions). Also, new suppliers must comply not only with official regulations and standards but also with those set by Perrigo Mexico.
Clients' orders are manufactured a month in advance, so a substantial reserve of two months is at hand. Subcontracting orders vary depending on buyers' demand, including raw materials to be processed. Distributors and public health entities are dealt with in the same way as private brands are, with the same logistics procedures depending on the client's required inventory. The only difference is that the brands belong to Perrigo.
Perrigo Mexico's business model has a distinction in logistics due to the wide variety of products and portfolios for retail clients.
"We supply from small business to large corporations. This wouldn't be possible without our suppliers' network support; we work very closely with them to ensure provision of required goods, price, quality and flexibility," Ganem says.
Distribution projects for Mexico in the short term are quite aggressive, along with strong investments in capital, capability, staff and, as a consequence, expansion and/or strengthening the suppliers' core and their capabilities.
Projections for the next five years
There has been a very positive behavior in the pharmaceutical industry not only in manufacturing, but in every aspect: retail competitors, doctors and the end consumer. With this current trend, Perrigo Mexico predicts growth both in clientele and as manufacturers. Also, public health institutions have increased their consumption of generic drugs.
"We are expecting volume and value growth, even though there is more competition within the trade, there are more retailers and laboratories seeking introduction into this sector. Growth will be capitalized only by laboratories able to guarantee quality, delivering product value and with the capacity to supply all the market segments," Ganem says.