Read the Conversation
Meeting highlights:
- Strategic Focus on Brazil: Brazil is a top priority market for Cardinal Health, with significant untapped growth potential, especially within the private hospital sector. The company is aiming to double its market reach and expand into the public sector.
- Investments in Technology and Innovation: Cardinal Health is investing in new products in Brazil, including a new updated version of advanced pneumatic compression devices to prevent thrombosis. The company is leveraging AI, machine learning, and IoT to enhance supply chain efficiency and product delivery.
- Customer-Centric Approach: The company is focusing on understanding and meeting the needs of healthcare professionals through partnerships and transparent communication. This approach aligns with Cardinal Health’s goal of delivering high-quality, cost-effective healthcare solutions.
- Commercial Excellence and Talent Development: For fiscal year 2025, the emphasis is on improving commercial strategies and customer segmentation. The company is also focused on developing internal talent and maintaining high employee engagement to reduce turnover and sustain growth.
- Leveraging Technology for Efficiency: Cardinal Health is committed to digital transformation, including waste reduction and optimizing supply chain processes. Recent innovations include a fully automated warehouse in Canada, highlighting the company’s dedication to technological advancements in operations.
EF: How have your goals and priorities evolved over the last year?
RF: We kicked off the fiscal year 2025 in July, making this our second month. This year, our primary focus is investments that will enhance our core capabilities and expand our market reach, particularly in Cardinal Health, Brazil. Brazil is a top priority for Cardinal Health, especially internationally. We've assessed the potential and are just beginning to tap into the growth opportunities here. Over the past few years, Cardinal Health has remodelled how we approach the market. Our key priority remains our commitment to being a truly customer-centric company. We aim to deeply understand and meet the needs of healthcare professionals (HCPs), delivering exceptional service and support. These priorities set the direction for this year.
This fiscal year is particularly exciting because new product launches are planned for the second half. As a market leader in some categories, we'll introduce products featuring the latest technology in intermittent pneumatic compression devices to prevent thrombosis. Notably, deep vein thrombosis (DVT) is the top preventable cause of hospital deaths, and these therapies are truly lifesaving. Lastly, this year, we’re focusing on improving commercial excellence and enhancing our supply chain capabilities. These initiatives will help Cardinal Health deliver comprehensive healthcare solutions that address the evolving needs in the Brazilian market and ultimately benefit our patients.
EF: How do you describe Brazil's strategic significance? Why is a dollar invested in Brazil better than a dollar invested elsewhere?
RF: Brazil's healthcare market has around 8,000 hospitals, with half in the private sector. When we consider our reach, Cardinal Health serves a fraction of these hospitals directly and through distribution channels. This means we have significant room to expand, especially within the private market, where we could more than double our current presence. The Brazilian hospital market is unique and evolving rapidly, with customers seeking high-quality, cost-effective medical supplies and advanced healthcare solutions to support their business needs. The overarching goal is to improve healthcare quality nationwide, particularly in the medical device sector, as we address the needs of an aging population and the rise in chronic diseases.
Cardinal Health is well-positioned to meet these demands, with a comprehensive portfolio available in all Brazilian states. As we adapt to this changing market, quality and customer service remain our top priorities. For example, our SCD 700 intermittent compression device, designed to prevent thrombosis in patients, offers unmatched benefits in both sleeves and stockings compared to others in the market. Looking ahead to 2025, we're excited to launch a new product featuring the latest technology that has yet to debut internationally. Brazil will be among the first to receive it, reflecting our commitment to raising the standard of care by preventing thrombosis incidents.
EF: Could you elaborate on how you’re shifting your proactive customer-centric approach and how you communicate with healthcare professionals to understand their needs?
RF: Collaboration and partnership are essential to any company's success. Cardinal Health works closely with public and private entities to drive innovation and improve patient outcomes. We build and maintain strong relationships with various stakeholders, including physicians, suppliers, and manufacturers worldwide, to access the latest resources needed for our products. Our approach to open, transparent communication, mutual respect, and shared goals that guide our market operations sets us apart. In Brazil, the healthcare ecosystem is undergoing major changes, with insurers, payers, and hospitals focusing on cost-effectiveness. Large hospital chains like Rede D’or are expanding rapidly, with plans to create an additional 5,384 beds by 2028. Their aggressive growth highlights the tremendous market potential.
We actively participate in major healthcare congresses and collaborate with industry leaders and professionals to highlight the value of our portfolio and its role in raising the standard of care in Brazil. Compression products, which I consider the crown jewel of Cardinal Health, are particularly impactful. Studies show that every 37 seconds, someone in the Western world dies from DVT, making it the leading preventable cause of death in hospitals. By sharing this message and working with HCPs and key opinion leaders (KOLs), we emphasize that investing in thrombosis prevention is not just a cost but a valuable investment that improves operations and saves lives. We remain committed to partnering with HCPs and KOLs to promote the benefits of our portfolio in the market.
EF: What KPIs do you use to measure performance? What KPIs are important to you now, and how do you assess the progress in building such a high-performance team?
RF: Coming from finance, I have a different perspective on the business than those from traditional sales or marketing backgrounds, usually where GMs come from. My previous role covered 33 countries from a financial standpoint, not just one, which gave me broad visibility and insight into different markets. This has been incredibly valuable since I stepped into the GM role in Brazil in April 2023, helping me identify key areas for Cardinal Health to focus on to drive success.
For this year, our main focus is on commercial excellence. For a company like Cardinal Health in Brazil, it's all about selling products. Regardless of their role, everyone should consider how to grow the business. Pipeline management is critical—we must ensure we have the right size, speed, breadth, and depth to meet our goals. We're also heavily focused on customer segmentation. Brazil is a vast market with many potential customers, so we need a smart, targeted approach. We've already done significant segmentation work in fiscal 2024, and we're taking it to the next level this year. With limited resources and team capacity, we must focus our efforts on the right markets and customers.
Another key measure of success for me is the strength of the team. A customer-centric company starts internally with the people who directly interact with our customers. That's why talent development has been a major focus over the past year and will continue to be. We aim to reduce turnover, provide clear career paths, and work on succession planning. We track these metrics to ensure we have a strong talent pool that can drive the business forward.
Additionally, we closely monitor our Voice of Customer feedback, including NPS (Net Promoter Scores) scores. Cardinal Health Brazil consistently has one of the highest NPS scores internationally, and it's crucial to maintain that level of customer satisfaction. If we're not meeting customer needs, we won't fully realize our potential in Brazil. On the talent side, we also track internal metrics through Voice of Employee surveys. We must maintain a healthy engagement index to gauge our business performance.
EF: How do you assess the adoption of new technology in Brazil? Do you see a difference between the public and private sectors in adopting new technologies? How are you using technology internally to enhance your operations and build this team?
RF: Regarding technology adoption in Brazil's healthcare sector, there's a lot of ongoing discussion. However, Brazil is still fully figuring out how to utilize technology's potential in this space. The conversation varies significantly between private and public markets. Even within the private sector, some leaders like Albert Einstein and Sírio-Libanês, two of our private customers, are at the forefront of technology adoption. On the other hand, smaller hospitals in different regions and states of Brazil may have different approaches. But across the board, everyone is focused on being cost-effective. Mergers and acquisitions have been dominant in the past twelve months, with major groups buying up companies to gain efficiency, scale, and stronger bargaining power with suppliers.
Regarding digital transformation, this is central to Cardinal Health's strategy. Our CEO, Jason Hollar, highlighted this last week when he discussed using AI, machine learning, and IoT to enhance our supply chain management. For example, we recently launched a fully robot-operated warehouse in Canada, an incredible advancement. Supply chain management is complex, and it is critical to ensure the right product is available exactly when the customer needs it. We use technology to predict demand more accurately, reduce waste in manufacturing, and achieve our ambitious ESG goals. Over the last two to three years, Cardinal Health has quickly adapted to meet the needs of healthcare professionals by embedding technology into our processes and becoming more efficient in response to market demands.
EF: When you reflect on the past five years at Cardinal Health, what achievements are you most proud of, and which moments stand out?
RF: My time at Cardinal Health has been a truly fulfilling journey, as I completed my 5th anniversary with the company. Looking back, I see the growth in Brazil and internationally as remarkable. When I joined as the finance leader in Brazil, the company was quite different from what it is today. Cardinal Health has undergone extensive transformations, and I've been fortunate to witness that firsthand. What makes working here so rewarding is that Cardinal Health genuinely supports employee development and helps us achieve our career goals. I'm a testament to that, having moved from different finance roles across LATAM, APAC, and EMEA to the GM position in Brazil. The company provides the tools and trust needed to develop professionally and reach where you want to be, whether in a GM role or any other path.
Being part of the international medical business, which includes Brazil, has given me valuable insight into the diverse healthcare needs across different cultures. I've had the chance to lead projects in Latin America, Asia, and Europe, which has played a crucial role in my growth. One of the most rewarding parts of my journey has been leading the incredible team at Cardinal Health. The environment and commitment to making a difference in healthcare, especially in Cardinal Health Brazil, are outstanding. Reflecting on these five years, during which I've moved in and out of the Brazil business, I've seen our operations here double in size. I'm confident we'll continue this upward trajectory and potentially double our size again soon. It's been a challenging but highly successful journey, and I'm proud of how far we've come in improving our services and expanding our presence in Brazil. Overall, it's been a deeply fulfilling experience for me.
EF: Do you have a final message or anything else you want to include?
RF: Cardinal Health has been on an incredible growth journey in Brazil, and I’m fortunate to have been part of most of the company’s history here. Our mission in healthcare is to positively impact millions of lives through our products and solutions, which truly improve patient outcomes. Working with products that enhance people’s quality of life is incredibly fulfilling.
What truly sets Cardinal Health Brazil apart is our culture and the people. This is my first time encountering such a talented, committed, and growth-oriented team. Every member is dedicated to advancing our business and fulfilling our mission. We have a bright future with plans to launch exciting new technologies and products to set new industry standards and address key healthcare needs.
The most rewarding part of this journey has been the opportunity to develop the people driving this company forward. To sum it up, Cardinal Health Brazil's journey has been one of growth and transformation. We're proud to lead the shaping of the future of healthcare in Brazil within our product categories. As we advance, by listening to our customers, collaborating with partners, and investing in innovative solutions, Cardinal Health is well-positioned to make a lasting impact on patients and healthcare professionals alike. If you ask anyone at Cardinal Health, they'll tell you we're building a healthier future for all with the progress and initiatives we're bringing to the market.
