Eurofins Scientific: Lab Network Structure & Scale | In Practise

Eurofins Scientific: Lab Network Structure & Scale

Former Chief Operating Officer, Spain at Eurofins Scientific

Learning outcomes

  • Eurofins org structure and the role of Gilles Martin
  • Design of the lab network and relationship between specialised and routine labs
  • How a sample test flows through the network
  • What a customer like Nestle really cares about when outsourcing testing
  • How tests are priced between biology and chemistry labs
  • Economies of scale for Eurofins versus other TIC players
  • Challenges for Eurofins to serve customers effectively at scale
  • How Eurofins could lose market share to competitors
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Executive profile

Mike Meissner

Former Chief Operating Officer, Spain at Eurofins Scientific

Mike is the Former Chief Operating Officer for Spain at Eurofins Scientific where he was responsible for running and designing the laboratory network for the country. He acquired and integrated 3 lab businesses into the Eurofins network and restructured the logistics to improve the hub and spoke network. Prior to running Spain, Mike spent 2 years as Managing Director of Biology in Europe which was a horizontal function that was in charge of managing the biology routine labs close to the customer. Mike is a seasoned operations executive and prior to Eurofins spent 12 years at Ikea and cargo-partner, a full range logistics provider. Read more

Mike, please tell us about your background and role at Eurofins?

Three and a half years ago I started working for Eurofins out of coincidence. I started off as a managing director for biology in the German market and was then promoted to the Chief Operating Officer for Spain.

How is the organizational structure of Eurofins evolving?

That is a complex one; Eurofins is divided into industry segments. Food and feed is the core business of Eurofins Scientific. Clinical diagnostics, genetics, pharmaceuticals, med-tech agroscience and environment are the core segments for Eurofins. Within each segment, you have a management team, corporate by regions, down to single facilities. Eurofins has a decentralized structure, with a service center in their Brussels headquarters setting standards and giving guidelines.

It is entrepreneur driven in the sense that there is a top-down, general global guidance, but local leaders are encouraged to make their own decisions.

Where does biology fit into that decentralized structure?

Another challenging topic is the structure. 15 laboratories or facilities in a country, equates to 15 leaders, on top of which there is a country manager and division leader, focusing purely on biology, chemistry, pesticides or toxins. A division leader for biology would guide the 15 facilities who each report back. In the day-to-day business, each of them has their own P&L, staff and client portfolio of responsibility. Eurofins strategically combines both local mindset and divisional decision making, with the challenge being bringing them together.

Taking Spain as an example, would each facility have a manager with their own P&L and client book, so a manager for food and a manager for environmental?

Correct.

Would there also be different managers for biology and chemistry?

Correct.

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Audio

Eurofins Scientific: Lab Network Structure & Scale

August 19, 2020

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