Siemens extends sales and service through pact with new ally

Delta Medical Systems has signed a long-term agreement to sell and distribute Siemens Medical Systems equipment and services, primarily in the upper Midwest region. Delta, which is based in Pewaukee, WI, will serve as a sales and service multiplier for the medical imaging giant, enabling the company to offer broader and more complete coverage to its customers in the region.

The deal, which Delta said had been in the works for "some time" prior to finalization, underscores Siemens' commitment to an expanded customer-focused business model, which Siemens executives hope will have an impact on all segments of the market.

"Through this alliance with Delta, Siemens is adding more team members to reach all market segments," said Siemens executive Brian Hilgers.

Delta's rural hospital and medical clinic clients have traditionally been served more efficiently by that company than by Siemens. By contrast, Siemens has focused on the larger medical institutions, Hilgers said. Partnering with Delta allows Siemens to broaden its client base.

The new business model began to evolve after Hilgers was named vice president for alternative sales channels last year. The new post involves revisiting Siemens' traditional strengths and identifying areas where the potential for customer growth exists. Key to its success is marrying customer needs with growth trends and existing sales and service channels, Hilgers said.

Other dealers representing selected products, including Physician Sales and Services of Jacksonville, FL, have already been integrated into the alternative sales strategy. Hilgers said more such companies will be recruited over the next few years to cover markets throughout the U.S.

"We'll be taking a look at how to reach other customers, markets, and product segments through partnerships that give us the necessary skills and capabilities," Hilgers said.

Under the agreement with Delta Medical, which covers Wisconsin, Minnesota, northern Illinois, and the Upper Peninsula of Michigan, Delta will also sell and service Siemens' women's healthcare products and portable radiographic equipment throughout the territory. The complete line of Siemens Mammomat mammography systems, including the Opdima digital spot imaging system, will be offered. The Mammomat product line is Siemens platform for all its future breast imaging technologies, and the Opdima was recently approved for diagnostic spot work-up procedures, according to the company.

"This (agreement) gives Siemens Medical an immediate sales and service multiplier in that (part of the country)," said Jim Ziebart, general manager and executive vice president for Delta. "With an additional 40 to 45 sales and service people on the street, the customer should get a better response."

The agreement with Siemens adds to Delta's already diverse business portfolio. Delta, which was established in 1979 and has grown to become a leading supplier of mammography systems, plans to continue representing such companies as R2 Technologies, Gendex/Del, Camtronics, and Artesian.

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3/28/01, Issue # 1506, page 4.