7 July 2020 | Product and Promotions Guide
Sources: http://blog.covest.com/news/8-benefits-of-joining-a-group-purchasing-organizations
https://www.ibisworld.com/united-states/market-research-reports/group-purchasing-organizations-industry/
https://www.aaha.org/publications/newstat/articles/2018-06/trends-in-your-inbox-gpos-play-a-critical-role-for-independent-veterinarians/
If you're interested in how a group purchasing organization can benefit your
veterinary practice, contact your Covetrus North America sales representative at
855.724.3461 or visit us online to learn more.
Why should my practice use a GPO?
There are several major benefits to being part of a group
purchasing organization.
• Some come with no additional cost. While some GPOs
charge a fee, some provide free memberships. This
means you get access to all the perks, at no additional
cost for your practice.
• There is less risk with purchasing. GPOs want to keep
their members, which means they need to provide access
to the best quality vendors. Most GPOs will fully vet
the credibility and value of potential suppliers before
partnering with them.
• You get great networking opportunities. A GPO brings
together many different veterinary professionals and
suppliers, so your organization gets access to a broad
range of other people in your field. Share best practices,
recent experiences and challenges with people that you
wouldn't have had access to before.
• Speaking of networking, GPOs keep you connected
with suppliers. GPO members will still receive deliveries
straight from the supplier and be able to call on the
supplier if there are any issues.
• Stay up to date. Being a part of a GPO means you're a
part of a giant network of people in your field. GPOs stay
on top of trends and new products and can inform their
members of changes in the industry.
The growth of GPOs
GPOs aren't new, they've existed in human healthcare since
1910 and have been growing since that time. The number
of GPOs grew from 10 in 1962 to 40 by 1974, before tripling
between 1974-1977.
The oldest veterinary GPO is the Veterinary Hospital
Association (VHA), which was started in 1985.
Fast forward to present day and GPOs are still growing.
In 2017, almost 40% of veterinary practices belonged to a
GPO, which was up from only 19% in 2015.
The GPO landscape changed quite a bit from 2013 to 2019.
Three new veterinary GPOs entered the playing field, three
existing GPOs merged with others and at least two went
out of business. There are now roughly eight major players
in the market and membership more than doubled across
those providers.
Even the structure of GPOs is starting to change, with
a focus on hybrid groups that can also offer marketing
support, analytics for your practice's performance and
business/clinical education opportunities.
One of the largest veterinary GPOs does just that. PSIvet
goes beyond the ability to purchase supplies at a discount.
They also provide access to education and technology
solutions that help you understand how to run your practice
more efficiently, meaning you can better serve your clients.
