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The vision was simple: build a national GPO that is managed by a non-profit to support the missions of other non-profit and faith-based organizations. The GPO would be run using a lean model and employees would be evaluated by the amount of money donated to members. Instead of keeping profits, APN would share back 100% of rebates and a substantial portion of vendor fees.
Founded in 2004 by four non-profit organizations, APN has since grown to more than 650 members in 35+ states. The lean model has been incredibly successful; In total, more than $29m has been donated to members, with $2.2m donated in 2020.
Normally, GPOs contract with every vendor they can in a product category. This maximizes fees the GPO receives, but the member suffers. Vendors are not willing to give large discounts when their competition is also in the GPO. Instead, in almost all cases, APN uses a sole source model; the best vendor, in terms of pricing, customer service and quality is selected, and members get a substantially better contract.
Part of APN’s vetting process is to ensure that the vendors that are part of our network share the philosophy that they are here to partner with members and ensure their success. When you succeed, they succeed.
As APN exists to benefit its members, rather than shareholders, multiple levels of bureaucray and red tape have been eliminated. When making decisions APN asks one simple question: Does it benefit members?
Interested in exploring new technology but don’t know where to start? APN will research, vet, and contract new vendors into the network based on member needs and requests. We constantly monitor new and emerging technologies and do the work to find the best partner so members can focus on what they do best – fulfilling their missions. Don’t see your favorite vendor in the network? APN will explore contracting with the vendor, at your request.
Alliance Purchasing Network is a limited liability corporation founded in 2004 by a partnership of four non-profit alliances. Incorporated in Delaware, APN is a qualified Group Purchasing Organization as described in Section 1001.952(J) of Title 42 of the Code of Federal Regulations.
