I recently hosted a crucial discussion with a dear friend and valued partner, Jim Gochis, Chief Procurement Officer at Synergy Dental Partners. With his extensive experience in dental procurement and dental supply chain management, Jim's insights are invaluable for any practice navigating the complex world of Group Purchasing Organizations (GPOs).
Our conversation focused on what truly defines a good, trusted vendor partnership within the complex world of GPOs and how dental practices should evaluate them. Here are the key takeaways from our discussion to help you assess and maximize your partnership value.
3 core factors for evaluating dental GPOs and maximizing purchasing power
Jim focused on factors that should carry the most weight in your decision-making process.
- Comprehensive suite of needs: A great GPO doesn't just sign up any vendor. They conduct in-depth background research and consider both market demand and the specific needs of their member base. They actively work to fill the right categories with vetted suppliers, which is crucial for effective dental procurement strategy.
- Price and cost control: Price is what you pay, but cost encompasses the alternatives, options, and overall product availability that reduce your practice's total expenditure. A good GPO doesn't just negotiate a price, then "lock and load" it. They continuously monitor, manage, and control the contract to ensure sustained savings and favorable terms, effectively maximizing purchasing power and supporting dental supply cost control.
- Efficacy of Member Services: The member services team should be more than a list-dispensing facilitator. A top-tier GPO's team is educated by suppliers, acting as gatekeepers to customized solutions. They articulate value and tailor offerings to your practice's specific needs, which is critical for successful dental supply chain optimization.
Identifying Red flags: your strategic guide to dental GPO supplier vetting
To determine the quality of a GPO, don't rely solely on advertising, podcasts, or key opinion leaders (KOLs). Jim provided these additional points to consider:
- Excessive supplier dilution: If a GPO has too many suppliers in one category (e.g., eight different competitors), it can be a red flag. This approach often means the GPO is signing up anyone who knocks, which dilutes the leverage buying power and could prevent the GPO from negotiating the best prices for its members.
- The "Here’s the list, have at it" mentality: Be wary of GPOs that simply hand you a roster of suppliers and expect you to do all the work. A good GPO will actively market and integrate its strategic partners, helping you discover solutions you may not have even known you needed.
- Cherry-picking suppliers: Jim encouraged members to lean into their GPO relationship. Cherry-picking erodes your overall savings opportunity and the collective leverage of the entire member base. Maximizing total practice profitability requires commitment.
Total practice profitability requires asking more of your GPO partner
The key to maximizing your dental group purchasing organizations (GPOs) partnership is to dig deep, ask tough questions, and recognize that a good GPO is driven by dedication and a culture committed to delivering quality clinical care that supports practice success. Financial reward is a positive byproduct of that mission, but by asking the right questions, you can ensure you're getting the most out of your GPO.
If you're interested in learning more about working with Synergy, please contact them today here and mention that Clerri sent you!
