Strength in numbers: Revenue will rise alongside corporate profit and downstream demand
IBISWorld’s Group Purchasing Organizations market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.
Industry Statistics & Market Size
Annual Growth 08-13
Annual Growth 13-18
Industry Analysis & Industry Trends
In the past five years, the industry has expanded in the wake of growing demand from medical and manufacturing industries. Operators are expected to benefit further in the next five years from rising corporate profit and continued demand from major markets. GPOs will face escalating challenges, however, as hospitals and other businesses increase pricing pressures.... purchase to read more
Industry Report - Industry Products Chapter
Supply chain services administrative fees
The vast majority of revenue in the Group Purchasing Organizations (GPOs) industry is generated from administrative fees from its supply chain services. Administrative fees are actually paid by the vendors and suppliers and not the end purchasers of the products and are estimated to account for 70.0% of total revenue. This system was designed by the US Congress in an effort to build a system that ensured hospitals get the best deals. The fees are a small percentage (generally less than 3.0%) of total purchases. In addition, the fees are required to be made transparent and reported to GPO customers. Vendors are willing to pay these fees in order to guarantee business and large contracts... purchase to read more
What is the Group Purchasing Organizations Industry?
This industry includes organizations that leverage the purchasing power of groups of businesses to obtain collective discounts from vendors.
Supply chain services administrative feesGroup member feesE-procurementData benchmarking
Organizing group purchasing agreementsData benchmarkingPerformance analysisSupply chain optimizationOrganizing group purchasing agreementsData benchmarkingPerformance analysisSupply chain optimization