Read the Conversation
EF: When you were appointed, what mission did you set for yourself, and moving forward, what are the key priorities on your agenda?
AC: For about 12 to 13 years, I've worked in the healthcare industry, mostly in Mexico. My passion lies in contributing to people's better health and recovery. Recently, I joined Medline, a major global supplier based in the USA, with a mission to replicate their successful model in Latin American countries. Medline has been in the industry for 100 years and is a major supplier of medical supplies worldwide. We have a vast range of over 300,000 SKUs to support institutions and partners across 26 divisions. In Latin America, we focus on importing and distributing Medline's brand to support surgeries and respiratory therapies, aiming to cover 70% of surgeries with our products.
In the past few years, we have acquired Hudson family products from Teleflex, enhancing our respiratory solutions. We now have one of the strongest portfolios to support healthcare in these challenging times, especially given the lessons learned from COVID. Looking ahead, my goal in Latin America is not just about supplying institutions but also directly helping patients. We're dedicated to becoming the most reliable supplier in the Mexican and Latin American markets by understanding the unique challenges in these regions.
EF: What is Mexico's strategic role in these manufacturing and distribution clusters?
AC: Mexico is crucial to our global manufacturing and product delivery strategy. We have four major manufacturing facilities in northern Mexico, employing around 9,000 people and fostering strong relationships with the government. This presence is essential for our worldwide manufacturing model. We also have a sales office that supports private and public institutions in Mexico and Latin America. Latin America is gaining importance due to its market potential, prompting us to invest in more manufacturing and acquisitions for a more flexible and agile supply chain. What makes me proud of Medline is our boldness and flexibility in enhancing the supply chain through acquisitions and investments in human resources.
EF: Can you elaborate on how you leverage new technologies to enhance your day-to-day supply chain operations and optimize the efficiency of your operations?
AC: Our main aim is optimizing the supply chain to deliver products at a fair price and of the highest quality, and for this reason, we have nearly 50 distribution centers globally, including six in Latin America, ensuring excellent customer service. We invest in inventory in order to reduce response time to public and private sector bids. Planning and systems are crucial, and we've built a strong team in planning, logistics, and international commerce. We're also progressing with incorporating artificial intelligence into our ERP systems for better service delivery. It's not easy, but with a good strategy, we avoid unnecessary expenses and slow-moving inventory. We believe in investing in talent to meet this challenge head-on.
EF: How are you capturing the new mid-income market, and how are you balancing your products between Mexico's public and private sectors?
AC: In our industry, 70% of the market is driven by public tenders, which remain significant despite the growth of the private and high-private sectors. This presents opportunities for us to cater to various segments, including value-based and higher-tier products. Our pricing strategy is crucial here. With a strong supply chain, we can offer competitive prices without compromising quality. We segment our offerings for different institutions, such as low- and high-complexity hospitals and retailers. Artificial intelligence helps us predict market needs and make quick decisions, ensuring flexibility and responsiveness in pricing and finance.
EF: How do you attract, train, and develop new talent at Medline?
AC: Despite our small market share in Latin America, we boast a robust human resources strategy focused on attracting, retaining, and developing talent within Medline. We see this as our moment to invest in and train individuals who can step into leadership roles. It's rare to find Mexican or Latin American leaders in these positions, and we take pride in the diversity of our team. Our goal is to potentially have CEOs from Latin American countries in the future. We prioritize diversity not only in healthcare backgrounds but also in hiring individuals from different industries. This approach brings varied perspectives to our team, aiding in more well-rounded decision-making.
EF: Five years from now, what would you like to have accomplished?
AC: I've been in this position since November, previously serving as the Vice President, handling commercial, marketing, sales, and HR. It's not typical for someone with a commercial background to be in this role, but I find it exciting and see it as a message that Medline prioritizes customer service and aggressive growth. Our CEO in the USA started as a sales representative, reinforcing the importance of commercial expertise. Looking ahead, in five years, I envision Medline Latin America doubling its revenue and operating with a sustainable business model that can be replicated in other countries.
EF: How do you balance the extensive amount of the product in your portfolio in Latin American countries? Do your portfolios differ depending on the country?
AC: When I joined the company, we faced the challenge of managing over 300,000 SKUs across 26 business units. We prioritized and strategically organized our portfolio into three main pillars: OR solutions, Breath and Prevent (respiratory & anesthesia portfolio) and Last Mile (Skin Health and Advance Wound Care solutions). This process took time due to the complexity of understanding the need for our products. With a presence in 16 countries in Latin America, each with distinct laws and regulations, we tailored our core products accordingly. This approach allows us to have a growing portfolio while recognizing the unique needs of each country's healthcare system.
EF: How have public and private sector partnerships evolved since the pandemic? How can we improve collaboration between stakeholders in the sector?
AC: COVID-19 has taught the industry many lessons, one of which is the importance of preparing for possible challenges in the future. For companies like Medline, investing in supply and planning will be valuable to partners in both the private and public sectors. Collaboration and understanding institutions' needs are also key to being effective partners. We aim to help institutions plan better, manage inventory more efficiently, and ensure sustainability for both our sector and the hospitals we serve. Our approach is about being smart and thoughtful in supporting these institutions rather than just focusing on selling products.
EF: What three pillars would you say are needed to build a resilient and sustainable healthcare system in Mexico?
AC: I would say trust is immensely important. Being the most trusted source involves providing the best customer service and experience. This means understanding and evaluating our customers, being open to feedback, and maintaining transparent communication. Secondly, as I have said before, collaboration is crucial in the journey to sustainable healthcare. Without working together, we simply cannot improve the system. Last but certainly not least, education and training. These are not just marketing strategies but also our responsibility as an organization: to train those who will use our products. Our team is well-educated in healthcare systems and product training, and we must share that knowledge with customers. It's about being honest about our capabilities and supporting users; we are the experts in creating our products, and they are the experts in using them.
EF: The spotlight is on Latin America, and many multinationals are entering Mexico and other regional markets. What makes Latin America an important place to invest in healthcare?
AC: Latin America has all the ingredients, including skilled labor, manufacturing opportunities, and quality resources, and these have played a crucial role in overcoming challenges such as economic hardships and the COVID pandemic. This makes it a fantastic place to invest due to the richness of resources and opportunities available in the region.
EF: Do you have any final message you would like to deliver?
AC: The most important message that I could share is my view of the incredible opportunities that Latin America holds for companies in healthcare. The market size and the opportunity to deliver better healthcare are optimal for growth and improvement, and we will need collaboration between government, private institutions, and partners in order to achieve this. This is something that has been spoken about for years but is now becoming a reality. We believe that here in Latin America, we can incorporate our successful model and share it with more countries around the world. Companies like Medline, which are flexible and have invested in resources, can lead the way globally, both in private companies and in the healthcare industry as a whole.
