Q: How has B. Braun adapted its product lines for the Mexican market, and how much of a responsibility do you feel to help raise the market to international standards?

A: We have chosen to invest in Mexico and we are making great efforts to create dialogue with important players in the sector such as the Ministry of Health. B. Braun has also joined AMID in order to develop beneficial strategies for the industry and the healthcare system in order to provide a better quality of life to patients. One of the most important issues for B. Braun is innovation, which is often rejected as a huge expensive.

This is not necessarily true. While innovative treatments can initially be more expensive, a thorough analysis of the complete value chain has to be implemented to determine total costs. Innovative technologies can often be less expensive in the long-term. We are collaborating with stakeholders to change this mindset.

Q: B. Braun stablished a joint venture with Promedici in 1993. What made Aesculap the right partner at the time and how has the partnership evolved over the years?

A: This joint venture began after an alliance with IMSS, which allowed us to produce in Mexico and specified that a certain percentage of our products have to be consumed at IMSS. The institute actually became the promoter of the alliance between B. Braun and Promedici since it was interested in increasing the production of medical devices in Mexico.

One device that we developed alongside Mexican doctors, which is called LogicalSystem of Arthroplasty (SLA). This product was developed for a specific anatomic situation found in Mexicans, as it has been discovered that the population has a slightly thinner femur and hip bone.

Q: After IMSS’ manufacturing requirement was lifted, B. Braun reduced its production in Mexico but kept its plant open. How has your manufacturing strategy in the country evolved over the years?

A: We are currently planning to increase our production capacity and to bring products to Mexico as a result of B. Braun’s strategy to increase its number o production plants in developing countries. Thus, our product portafolio in Mexico must expand, especially in terms of highly innovative prodcuts that are currently only available in developed countries due the possibility of incentivized reimbursement technologies such as spinal implants tha are well-established in developed countries.

These spinal implants will soon be manufactured at our plant in the State of Mexico as part of a new worldwide system wich will see an increase in our production capacity in Tuttlingen, Germany, while several of the production processes will be outsourced to various countries, incluiding Mexico.

Q: As part of this outsourcing process, to what extent do you have to upskill your personnel in Mexico?

A: A: We do not have highly qualified technicians in Mexico as we either have engineers who are overqualified or production workers who do not have the proper qualifications to operate our machinery. Therefore, we implemented our own five to eight-year educational program in the plant. The process is long as employees have to become experts in each specific competency before advancing to the next. The problem is that, as employees become more valuable, they also become more attractive to competitors.

Several companies are unwilling to invest in the training of their employees as they fear high employee turnaround, which is common in other industries. While this is a risk for us, we believe that our compensation package and social environment will allow us to retain these individuals as they recognize that they have the opportunity to profess with B. Braun.

Q: How are you creating awareness about the new products that are you developing?

A: We are investing heavily on our consultancy services. At this point, 40% of our sales are surgical instruments as well as endoscopic and hemodialysis systems. We are also attemping to evercome the common difficulties faced by producers in participating directly in consolidated sales.

Very few companies in Mexico are able to deliver to such a wide spread locations within 24 hours, so we must determine a way to keep prices competitive while reaching our clients on time, wich has led to us handle about 50% of our sales directly and 50% through distributors.

This is slightly unusual for most international companies that depend on distributors, but we like to work directly with many clients as distributors are concerned with products and do not offer consultancy services.