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What is a GPO and why do you need one for your independent pharmacy?

A GPO is a Group Purchasing Organization. Simply put, it is a business

structure created through the grouping of similar organizations within an industry.

There are many GPOs out there today serving all types of industries. By promising

vendors a specific amount of purchasing power, the GPO maintains leverage over

the vendor and then uses that power to negotiate a better cost of goods. The small

independent businesses in turn get savings on products and services that are needed

to run their operations. With many large chain stores spreading all around the

world, a GPO allows for many smaller organizations to take advantage of a more

equitable pricing scheme.

Ban together! That is the mission of many GPOs. When many businesses

join under one banner, the result is fair pricing for everyone. However, the GPO

doesn’t directly purchase the product in its specific industry. Rather, the GPO

functions as a middleman between the manufacturers and its members. Through

the filter of the GPO, the products are discounted and sold to its members at a

lower price. In simple terms, a GPO acts as a bus with a small fee that drives

passengers or independent businesses to a store (the vendors) with discounts that are formed by the promise of more revenue.

If you are a small business, there is a chance a GPO could help!

When it comes to the Pharmacy industry, giant chains like CVS, Walgreens, Rite

Aid, Walmart, and new online companies seem to be taking over, making it very

difficult for independent pharmacies to compete. As a result, the small-town

pharmacist is closing their doors in many places. A GPO in the pharmaceutical

business is necessary, and that is where United Pharmacy Network (UPN) steps in.

UPN can help a community pharmacy increase its profit margins by a

significant amount, allowing them to stay competitive with the chain stores. UPN

has over 25 year’s experience and more than 500 independent pharmacy

members. We are one of the fastest GPOs for pharmacies in the nation. Our

relationships allow for negotiation on the pricing of generic and brand

medications. UPN provides its members extensive rebates and services to make

sure everyone in our network is staying competitive. Members have access to

UPN-created programs to enhance and promote the independent pharmacy. We

help build pharmacies with business analysis, floor plan optimization, and classes

tailored to member needs. At UPN, we want to see you thrive! We even offer

marketing support for your group. We help promote member pharmacies with

bag stuffers to flyers and from social media to brand building. UPN will help you

send a clear message to your patients, drive sales, save money, and compete. We

are not only a business but also a resource to help your pharmacy needs. If you

are an independent pharmacy that is struggling to compete with the chain stores,

UPN can serve you well! Become a member of our GPO today!

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