What does the contracting system in the pharmaceutical industry mean? What are the benefits of the contracting system to the sales company and the salesperson?

The impact of the system on production is huge, and facts have proven that only by implementing the "contracting system" can we truly mobilize people's enthusiasm for work. However, the "contract system" seems a bit unfamiliar to the pharmacy industry at present.
Suzhou Li'an Pharmaceutical Chain Store Co., Ltd. is the leader in Suzhou's pharmaceutical retail industry and is also among the top 100 chain stores in the country. However, in the Suzhou market where drugstore competition is fierce, if it wants to remain invincible, it must It is not easy to maintain one's leading position permanently. In addition to making major adjustments to the positioning format of some pharmacies, Suzhou Li'an is also committed to improving its own system to stimulate employees' enthusiasm for work. It is the first to implement a single-store "assessment system" in pharmacies. Key projects.
For a long time, drugstore store managers have had a "gloomy future" mentality. They believe that no matter how good they are, they will only get the salary and not get much benefit. In the long run, this will affect the store manager's work. Positivity. In the same way, as an ordinary clerk, due to the characteristics of his own industry, it is difficult to earn a good income and have a high social status. He also often loses his work spirit and enthusiasm in the day-to-day mechanical work. Positivity.
This can be said to be a common phenomenon in chain pharmacies. In order to eliminate this bad phenomenon and strengthen its advantages in the fierce competition, Suzhou Li'an Pharmaceutical Chain decided to implement a single-store assessment system for each pharmacy:
Assessment content:
Based on the location, surrounding environment, operating conditions and other factors of each pharmacy, the Li'an headquarters designates a task indicator for both parties to reach mutual understanding. If the store manager can complete the indicator, the excess will be compensated. For dividends, half of the excess will be handed over to the company headquarters, and the other half will be distributed by store managers and employees according to the principle of 30:70.
In the same way, the store manager will also evaluate each counter group leader according to this method, and develop operating indicators based on the situation of each counter group, until this evaluation is implemented for every store employee.
In this way, from the store manager down to every clerk, they work not only for the interests of the company, but also for their own interests, which greatly stimulates the enthusiasm of employees, and they will naturally find ways to strengthen services and improve sales volume.
Comments:
Suzhou Li'an Company's reform of the incentive mechanism for front-line store employees should be said to cater to the overall development trend of store sales. In fact, the store staff's Promotion has always been an important means to increase sales revenue. Not only in the pharmaceutical industry, but also for any enterprise that needs terminal counters to sell products, its terminal management is the key to achieving sales growth, and the incentive method is Putting it in place is the core of terminal management. Therefore, Li'an Company's approach is a simple and easy method in the short term, which is worth learning from. Specifically, it can include the following points:
1. The problem of who does the work is alleviated: the store clerks have implemented the " "Performance Indicator Assessment", therefore closely combining personal interests with collective interests will effectively promote the completion of the company's overall goals on the one hand, and on the other hand closely combine personal interests with the value created by individuals, thus Achieved the transformation from "working for the company to working for myself".
2. The transformation from "management" to "operation": In fact, all terminal promotions employees of consumer goods use sales Li'an Company has no innovation in the way of index commission. The key is that under this model, the role of Li'an Company's store manager has changed from a passive "manager" to one with a "contracting system" as its core. The initiative of the role of operators and store managers has been greatly released, and their sense of responsibility is in place.

3. Create fair evaluation standards: Li'an Company implements an assessment method guided by performance indicators, which will further enhance the fairness and transparency of internal competition, enable employees' work achievements to be specifically quantified, and at the same time effectively enhance Employees’ crisis awareness.
Although Li'an Company's implementation of the "contracting system" has many benefits, we still need to pay attention to the various potential problems caused by the past implementation of the "contracting system", among which the more important ones are the following:
1. Short-term behavior and long-term development: While the contract system stimulates employees' enthusiasm, it also stimulates employees' excessive pursuit of personal short-term interests. In particular, front-line employees (including store managers) are likely to use inappropriate methods to achieve sales revenue growth. Justifiable means. In this case, it is very easy to cause employees to focus on the "short-term" and ignore the "long-term" mentality, which is extremely detrimental to building a strong and stable sales team.
2. Company interests and personal interests: Although the "contracting system" strengthens the bond between company interests and personal interests, fundamentally speaking, this bond must be based on a sound governance structure. On the contrary, material incentives will lay the foundation for destroying the company's interests.
3. The unfairness of a single indicator: The establishment of indicators must emphasize systematicity, that is, it needs to emphasize both "process" and results, that is, it needs to emphasize "incentives" and "health care". Overly single indicators also lack their own fairness and can easily form blind spots in management.
4. Construction of management echelon: The "contracting system" can easily cause damage to the construction of the company's future backbone team. Due to the implementation of the contracting system: "the company requires the store manager, and the store manager requires employees" in this overly simple hierarchical management , supervision and evaluation are likely to become a display platform for personal preferences, which is not conducive to the implementation of the company's talent strategy.
5. Establishment of the company's health concept: The biggest threat to the "contracting system" comes from the weakening of the implementation of the company's philosophy. In the long run, the lack of investment in the company's moral philosophy will ultimately affect all aspects of the company's development, and In the end, it will reflect a trend that is irreversible. Except for the company's top management, no one cares about this.
In summary, the contracting system has many benefits in the short term, but judging from past experience, the contracting system also has various potential drawbacks, which need to be suppressed and resolved through systematic means. These must attract the great attention of the company's decision-makers.