Strategy for Growth
Strategic acquisitions, organic growth, has marked Patterson for 132 years
With all the complexities that come with being part of a $3 billion global firm, Patterson Dental has kept things simple by focusing on one thing – taking care of the customer.
Patterson started as a dental company in 1877, when brothers John and M.F. Patterson purchased a Milwaukee drugstore and added dental and surgical supplies to their regular stock of medicines, extracts, toiletries, brushes, perfumes and soaps. In efforts to make the young company a success with direct-to-the-customer service (driving entire wagonloads of stock to nearby dental society meetings), the Pattersons gained the trust of dentists by providing quality products, innovative technologies and consistent, personal service.
Acquisitions
This era of rapid growth was marked by acquisitions, including D.L. Saslow Co. in 1987, which substantially strengthened Patterson’s position as a national dental supplier. Patterson began trading on the NASDAQ Stock Market in 1992 (ticker symbol: PDCO). In 1993, the company entered the Canadian dental supply market with the acquisition of Healthco Canada. In the year 2000, it reached $1 billion in sales.
Within three years, due to some key acquisitions, business operations expanded into three reportable segments: dental, veterinary and rehabilitation supply. The company had acquired J. A. Webster companion-pet veterinary (now Webster Veterinary) in 2001, and AbilityOne Products Corp. rehabilitation supply (now Patterson Medical) in 2003. In 2004, the corporate name changed from Patterson Dental Company to Patterson Companies, Inc. to reflect this diversified business platform. James W. Wiltz was named CEO in 2005 and holds this position today.
The Patterson company culture includes a long record of quiet philanthropy and support for communities it serves, including substantial corporate giving focusing on nonprofit organizations that improve access to healthcare for underserved populations and to help those most in need live healthier lives. The company also is dedicated to applying eco-friendly practices and doing its part to conserve natural resources.
Software and support
Patterson Companies’ largest business, Patterson Dental, is one of North America’s largest distributors of dental merchandise, equipment and technology. Patterson serves customers through 88 branch offices and over 1,500 representatives and equipment specialists, providing over 90,000 products and equipment, software, technology solutions and services. Patterson Dental considers itself a technology leader, introducing up-to-date equipment and making key acquisitions, including EagleSoft Inc. (1997) and CAESY Patient Education Systems (2004). The company promises dental professionals assistance in every step of the technology integration process.
In December 2008, Patterson acquired Dolphin Imaging Systems/Dolphin Practice Management, a leading provider of 3D imaging and practice management software for specialized dental practitioners (including orthodontists, oral and maxillofacial surgeons and oral and maxillofacial radiologists). The acquisition brought two key lines to Patterson Dental’s technology offering: imaging software that maximizes the benefits of cone beam and other digital photography and radiography systems that Patterson provides; and orthodontic practice management software that manages workflow, patient scheduling and financial systems.
Recognizing that providing new technologies requires a strong support infrastructure, The Patterson Technology Center (PTC) in Effingham, Ill., serves 45,000 customers nationwide to help ensure a smooth transition to technology – from installation and training, to support after the sale.
Aside from maximizing customers’ investment in technology, PTC research, development and technology upgrades enable practices to maximize efficiency and productivity through comprehensive integration packages with leading digital products. “As the dental office continues to become more complex, highly trained technicians and responsive, dependable service are a must,” says Patterson Dental President Scott Anderson.
Manufacturer relationships
But Anderson also emphasizes the importance of strong manufacturer relationships in driving value to the customer. Patterson is the exclusive provider of Schick digital X-ray products and the exclusive North American distributor of CEREC technology from Sirona. CEREC (Chairside Economical Restoration of Esthetic Ceramics) enables dentists to create and seat high-quality, tooth-colored restorations in one appointment.
In August 2009, Patterson Dental announced its role as the exclusive distributor of Under Armour Performance Mouthwear™, a new line of custom mouthpieces and mouthguards. “Our mission is to drive innovation to the dental profession,” Anderson said. “The innovation business partners bring, along with a customer-focused service-driven commitment shared by Patterson, play an integral role in building lasting relationships with customers.”
While the state of the global economy has affected businesses across most industries, Patterson has no intention of slowing down its investment in resources that benefit doctors and their staff, according to Anderson.
Recent initiatives include an enhanced customer loyalty program, Patterson AdvantageSM, which offers the opportunity for customers to reinvest in their practice using Patterson Advantage Dollars. And prompted by the belief that all dental professionals should have the opportunity to position their practice for greater efficiency and productivity, Patterson made the decision to provide EagleSoft practice management software free. “Dentists also continue to invest in technologies such as CEREC and digital X-ray systems, which we believe is due to a focus on solutions with rapid rates of return that also help strengthen relationships with patients, as well as attract new patients,” Anderson says.
Technology’s direction for the future was further revealed at the IDS meeting in March 2009 in Cologne, Germany, with the prominent display of cone beam and other digital technologies. Anderson says that the new technologies featured at meetings several years ago, such as CAD/CAM and digital X-ray, have steadily gained market acceptance and are largely considered mainstream technologies. In fact, Patterson Dental and Sirona recently announced that North American CEREC sales have surpassed the $1 billion mark.
But regardless what the exciting future of dentistry brings, says Anderson, customers can count on Patterson to continue driving innovation to the dental profession with a firm grip on core values and growth rooted in strategies built on doing what’s best for customers. “Executing on strengths such as building customer relationships, taking care of customers in transitions that include CAD/CAM, digital solutions and remodeled or new office space will remain essential in the years to come.”
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