Strength in numbers: Revenue will rise alongside corporate profit and downstream demand

The Group Purchasing Organizations (GPOs) industry is composed of entities that leverage the purchasing power of groups of businesses to obtain collective discounts from vendors. GPOs earn most of their revenue by charging an administrative fee to vendors. The fee is generally less than 3.0% of the price of the item purchased through the GPO. During the past five years, demand for GPO services has increased as the improving economy stimulated demand for a variety of downstream industries, including the manufacturing and food service sectors. Additionally, the healthcare reform of 2010 has expanded in the healthcare sector. This growth has kept purchase levels high for healthcare providers, which has increased demand for GPO services...purchase to read more.

Industry Statistics & Market Size
Revenue
$4bn
Annual Growth 12-17
2.1%
Forecast Growth 17-22
Profit
Employment
14,469
Businesses
670
Market Share of Companies

Industry Threats & Opportunities

  • Hospitals will increase purchases made through GPOs, spurring industry growth
  • The improving economy bolstered demand from a variety of downstream markets
  • Increasing PPACA regulation will likely increase demand for GPO consulting services
  • Industry Report - Industry Analysis Chapter

    The Group Purchasing Organizations (GPOs) industry is composed of organizations that leverage the purchasing power of groups of businesses to obtain collective discounts from vendors. GPOs primarily service the healthcare sector, but also serve clients in the food service, manufacturing, legal and education sectors. Industry revenue has steadily grown since 2012 as downstream industries recovered from the recession and jump-started production levels. Growth remained positive throughout the past five years as corporate profit grew, allowing companies to increase purchases of all necessary supplies and thereby increase demand for industry services. As a result, during the five years to 2017, industry revenue is expected to increase at an annualized rate of 2.1% to $4.3 billion...purchase to read more.

    Additional Insights for the Group Purchasing Organizations Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Group Purchasing Organizations Industry are

  • Control of distribution arrangements
  • Having links with suppliers
  • Development of new services
  • IBISWorld analysts also discuss how external factors such as Corporate profit and Demand from medical instrument and supply manufacturing in the Group Purchasing Organizations industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    What's in this report

    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.

    Industry Products
  • Supply chain services administrative fees
  • Group member fees
  • E-procurement
  • Data benchmarking
  • Industry Activities
  • Organizing group purchasing agreements
  • Data benchmarking
  • Performance analyzing
  • Supply chain optimizing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Corporate profit
  • Demand from medical instrument and supply manufacturing
  • Number of people with private health insurance
  • Number of physician visits

  • Current Performance
  • Healthy healthcare market
  • Downstream markets
  • Industry landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Healthcare reform
  • Downstream markets
  • Industry constraints
  • Changing trends
  • Table: Group Purchasing Organizations Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Group Purchasing Organizations Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Manufacturing
  • Medical Instrument & Supply Manufacturing
  • Supermarkets & Grocery Stores
  • Law Firms
  • Educational Services
  • Hospitals

  • Key Selling Industries
  • Business Analytics & Enterprise Software Publishing
  • Manufacturing
  • Medical Instrument & Supply Manufacturing
  • Office Stationery Manufacturing

  • Products & Services
  • Supply chain services administrative fees
  • E-procurement
  • Data benchmarking
  • Other
  • Group member fees
  • Chart: Group Purchasing Organizations Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Healthcare
  • Food and agriculture
  • Industrial manufacturing
  • Other
  • Legal
  • Education
  • Chart: Major Market Segmentation for the Group Purchasing Organizations Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesOther
  • Chart: Cost Structure Benchmarking – Sector vs Group Purchasing Organizations

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Group Purchasing Organizations Industry

  • Industry Globalization
    Premier Inc., Vizient Inc.,
  • Table: Premier Inc. - financial performance
  • Table: Vizient Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Group Purchasing Organizations Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Group Purchasing Organizations Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Corporate profit (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Benchmarking
  • The process of comparing business processes and performance metrics to a standard.
  • E-Procurement
  • The business-to-business or business-to-consumer purchase and sale of supplies, work, and services through the internet.
  • Supply Chain Optimization
  • The application of processes and tools to ensure the optimal operation of a manufacturing and distribution supply chain.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Group Purchasing Organizations provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Group Purchasing Organizations:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Group Purchasing Organizations market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Group Purchasing Organizations, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

    Contact Us

    Want to speak to a representative? Call us.

    clear