2005 Annual report - Virbac

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The Industrial operations department is responsible for Group
industrial strategy in line with the strategic goals, via an
industrial plan.
The production activity is also aided by an ERP system
selected by the Group and progressively rolled out in Group
subsidiaries with a standard and homogenous modus
operandi.
The Industrial operations department also undertook a
project to simplify and optimise production processes in order
to further standardise preventive maintenance on production
machinery and improve productivity through shorter
switchover times.
❖ Sales and marketing
In line with the product portfolios, operational marketing has
become further regionalised. Product marketing is
coordinated at zone level, the Corporate marketing unit
handling more longer-term strategic marketing.
◆ continuing the improvement process for monitoring undertakings
through the putting in place of a system enabling
the automated monitoring of French companies,
◆ harmonising Group information systems with the progressive
rolling out of Movex ERP in all Group subsidiaries.
This improvement work helps to empower people within the
organisation and ensure constant vigilance by all levels of
management. It should, moreover, encourage constructive
exchanges within the Group.
These progressive changes towards increased formalism,
in line with the changes in the regulatory framework, are
driven by the Executive board of Virbac with an eye to
retaining flexibility, proactiveness, responsiveness and
a sense of responsibility deemed key to the strength and
success of the Group.
Sales and marketing initiatives are based on the Group’s
strategic goals set out within the zones and then within
subsidiaries, who enjoy significant independence with regard
to the putting together of local sales and marketing policies.
The monitoring of initiatives in the field is dynamic and
proactive because of the direct relationship between the
department, the areas and the subsidiaries. This monitoring is
strengthened by the presence of a financial controller
dedicated to each area: reporting to the Area director and
functionally to the Chief financial officer.
A European global marketing and sales effectiveness project
was undertaken in 2005 and should make it possible to
improve expertise thanks to the putting in place of a European
training programme, to improve the effectiveness of sales and
marketing initiatives through Europe-wide campaigns and
sharing experience between subsidiaries, and to better meet
the expectations of customers by developing the technical
support they require and by laying down distinct monitoring
and analysis criteria.
2.3. Outlook and areas for improvement
in the internal control system
The strengthening of the internal control system and of its
effectiveness is an ongoing process: the action plans put in
place in 2005 helped significantly and new avenues for
improvement have since been identified and followed:
◆ updating and redrafting the Group’s operating rules to
ensure better formalisation and publication of “Best
practices” in particular in operational and financial areas
and in monitoring international subsidiaries,
◆ implementing a proactive risk identification policy,