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This paper presents an innovative and flexible approach for recommending the number, size and composition of purchasing groups, for a set of hospitals willing to cooperate, while minimising their shared supply chain costs. This approach makes the financial impact of the various cooperation alternatives transparent to the group and the individual participants, opening way to a negotiation process concerning the allocation of the cooperation costs and gains. The approach was developed around a hybrid Variable Neighbourhood Search (VNS)/Tabu Search metaheuristic, resulting in a flexible tool that can be applied to purchasing groups with different characteristics, namely different operative and market circumstances, and to supply chains with different topologies and atypical cost characteristics. Preliminary computational results show the potential of the approach in solving a broad range of problems.

Highlights • Vaccine purchasing groups have diverse organizational and member characteristics. • These groups get lower vaccine prices mainly through product loyalty provisions. • These groups offer other discounts and services to their members.

The paper aims to investigate the effects of the COVID-19 pandemic on working capital management policies among Polish small and medium-sized enterprises operating in Group Purchasing Organizations (GPOs). The results show that the firms adopted a moderate-conservative strategy for their working capital management. Moreover, the evidence confirms that the COVID-19 pandemic crisis did not change Working Capital Management (WCM) strategies significantly. The companies that have high financial security as a result of the high ratio of Liquidity, Quick, and cash conversion cycle (CCC) have tried to attract more new customers in the market by increasing the due date of accounts receivable so they can improve their sales performance, and also reduce the liabilities turnover to be able to work with more suppliers in the market. Moreover, among the various WCM strategies, the companies with a higher CCC ratio, along with those whose bulk of current assets consisted of accounts receivable and short-term investments, managed to have higher sales returns. Finally, our outcomes indicate that the firms operating in large cities have lower sales returns, meaning even Polish small and medium-sized enterprises' ability within GPOs with the aid of the central unit can also get high return on sales (ROS) results.

Purchasing groups are multi-entity organisations that operate in practically every sector. Their greatest role is to improve the financial situation of small and medium enterprises (SMEs). In the case of enterprises operating in the sectors that are just developing, especially those belonging to SMEs, it is particularly difficult to obtain favourable financial results. In Poland, such sectors include, among others, renewable energy, which is slowly developing, but has not yet reached the size set in climate policy. The purpose of the paper is to present how functioning under group purchasing organisations (GPOs) affects the profitability of companies related to the renewable energy sector. For the example of the largest industry purchasing groups, the analysis showed that high profitability results were achieved by enterprises operating in them compared to entities operating independently in the market. In total, 71 enterprises operating in the sector related to the renewable energy sector in Poland were analysed. The enterprises were divided into units operating in the purchasing groups of 46 enterprises, and those that operate independently in the market of 25 enterprises. The research period covered the years 2016–2019. The analysis showed that the scale effect allowed companies to increase profits and had a positive effect on their financial liquidity. The research proved that in the case of commercial enterprises operating in the sector related to renewable energy, functioning within the industry purchasing group allowed high profitability and financial liquidity. There is a dependency that the liquidity increases with a growth in profitability.

Most healthcare organizations (HCOs) engage Group Purchasing Organizations (GPOs) as an outsourcing strategy to secure their supplies and materials. When an HCO outsources the procurement function to a GPO, this GPO will directly interact with the HCO’s supplier on the HCO’s behalf. This study investigates how an HCO’s dependence on a GPO affects supply chain relationships and power in the healthcare medical equipment supply chain. Hypotheses are tested through factor analysis and structural equation modeling, using primary survey data from HCO procurement managers. An HCO’s dependence on a GPO is found to be positively associated with a GPO’s reliance on mediated power, but, surprisingly, negatively associated with a GPO’s mediated power. Furthermore, analysis indicates that an HCO’s dependence on a GPO is positively associated with an HCO’s dependence on a GPO-contracted Original Equipment Manufacturer (OEM). HCO reliance on GPOs may lead to a buyer’s dependence trap, where HCOs are increasingly dependent on GPOs and OEMs. Implications for HCO procurement managers and recommended steps for mitigation are offered. Power-dependence relationships in the medical equipment supply chain are not consistent with relationships in other, more traditional, supply chains. While dependence in a supply chain relationship typically leads to an increase in reliance on mediated power, GPO-dependent HCOs instead perceive a decrease in GPO mediated power. Furthermore, HCOs that rely on procurement service from GPOs are increasingly dependent on the OEMs.

The COVID-19 virus has hit the economy around the world. In Poland, SMEs have the greatest problems with doing business. Border blockades and the quarantine for enterprises in virtually all industries throughout Poland greatly complicated the supply systems and the inventory management process. Up to now, SMEs have acted in group purchasing organizations to improve their competitive position. This form of activity also positively affects their financial security. Therefore, in this paper, the inventory management among this group of companies during the COVID-19 pandemic was analyzed. The purpose of the paper was to show how inventory management strategies changed during the COVID-19 pandemic in SMEs operating in industry GPOs. The analysis was carried out on a group of 88 Polish commercial enterprises operating in purchasing groups. The research period covered the years 2017-2019 and March-June 2020. The research showed a change in inventory management strategy in SMEs during the pandemic time of COVID-19. For the first four months, managers of enterprises tried to pursue a conservative policy and to accumulate stocks in the event of a shortage of supplies. This article also presents the form of security that was applied for SMEs operating in group purchasing organizations (GPOs) to avoid forced downtime caused by the COVID-19 pandemic.

This paper examines the controversial role that Group Purchasing Organizations (GPOs) play in the supply chains for healthcare products. Among the controversies, perhaps the most fundamental one is whether or not GPOs reduce purchasing costs for their members. However, the fiercest controversy is around the “contract administration fees (CAFs)” that GPOs charge to manufacturers. We examine these and other controversies using a Hotelling duopoly model. Among our conclusions: GPOs increase competition between manufacturers and lower prices for healthcare providers. However, GPOs reduce manufacturers' incentives to introduce innovations to existing products. We also demonstrate that the existence of lower off‐contract prices is not, per se, evidence of anticompetitive behavior on the part of GPOs. Indeed, we demonstrate that, under certain circumstances, the presence of a GPO lowers off‐contract prices. We also examine the consequences of eliminating the “safe harbor” provisions that permit healthcare GPOs to charge CAFs to manufacturers, and conclude that it would not affect any party's profits or costs.

Background: Hospital purchasing alliances are voluntary consortia of hospitals that aggregate their contractual purchases of supplies from manufacturers. Purchasing groups thus represent pooling alliances rather than trading alliances (e.g., joint ventures). Pooling alliances have been discussed in the health care management literature for years but have never received much empirical investigation. They represent a potentially important source of economies of scale for hospitals. Purposes: This study represents the first national survey of hospital purchasing alliances. The survey analyzes alliance utilization, services, and performance from the perspective of the hospital executive in charge of materials management. This study extends research on pooling alliances, develops national benchmark statistics, and answers important issues raised recently about pooling alliances. Methodology/Approach: The investigators surveyed hospital members in the seven largest purchasing alliances (that account for 93% of all hospital purchases) and individual members of the Association of Healthcare Resource & Materials Management. The concatenated database yielded an approximate population of all hospital materials managers numbering 5,014. Findings: Hospital purchasing group alliances succeed in reducing health care costs by lowering product prices, particularly for commodity and pharmaceutical items. Alliances also reduce transaction costs through commonly negotiated contracts and increase hospital revenues via rebates and dividends. Thus, alliances may achieve purchasing economies of scale. Hospitals report additional value as evidenced by their long tenure and the large share of purchases routed through the alliances. Alliances appear to be less successful, however, in providing other services of importance and value to hospitals and in mediating the purchase of expensive physician preference items. There is little evidence that alliances exclude new innovative firms from the marketplace or restrict hospital access to desired products. Practice Implications: Pooling alliances appear successful in purchasing commodity and pharmaceutical products. Pooling alliances face the same issues as trading alliances in their efforts to work with physicians and the supply items they prefer.

Receivables management is one of the most important elements of business management. Short-term receivables are the basic source of cash in an enterprise. Mistakes made in this area of management block the functioning of the enterprise. The lack of cash leads to the suspension of sales in commercial enterprises and in the case of production units to stop production. Therefore, it is extremely important to introduce an appropriate receivables management strategy that will allow controlling customers and avoid the occurrence of overdue receivables. The main purpose of the paper was to determine an impact of the implementation of the requirements of standardized quality management systems on the improvement of processes related to the management of receivables from recipients. The research process was carried out on a sample of 38 organizations associated under two group purchasing organizations. The enterprises were divided into those which implemented quality management systems and those that did not use such solutions, then analyzes were made and the results obtained by enterprises associated in particular groups were compared. The research process allowed accomplishing the main goal of the paper and to answer the research questions posed.

PurposeThe paper aims at investigating antecedents and predictors of consumers' buying and consumption processes within the Italian Solidarity Purchasing Groups (SPGs) to enrich current debate about drivers and levers on which act for fostering ethical consumption in food sector.Design/methodology/approachBuilding upon the theory of planned behavior (TPB) a theoretical model is proposed for depicting possible antecedents and predictors of consumers' buying and consumption processes in food sector. The validity of the model has been tested via partial least squares structural equation modeling (PLS-SEM) using SmartPLS for analyzing primary data collected through a structured questionnaire from 354 consumers engaged in SPGs.FindingsWithin the domain of food buying and consumptions through SPGS, results show that consumers' behavior intention (BI) is influenced by consumers' attitude (ATT) and perceived behavioral control (PBC). Moreover, the research also demonstrates that consumers' ATT is influenced by consumers' ethical self-identity (ETH), consumers' willingness to support local economy (SLE), and food safety concern (FSC).Originality/valueThe study contributes to the ongoing debate on sustainable consumerism focusing the attention on SPGs as emerging social organizations inspired by ethical food consumption. Both theoretical development and empirical evidences enrich current knowledge about drivers and levers on which act for fostering ethical consumption in food sector.