Group purchasing: vendor selection

Abstract

Ways that purchasing groups assess pharmaceutical vendors and products are discussed. The size of the purchasing group affects the process of screening vendors, with small groups tending to accommodate familiar vendors and large groups protecting themselves from an excessive number of prospective suppliers. Large groups usually have more resources to conduct in-depth screening. It may be necessary to organize subgroups to deal with the various aspects of the selection process; one subgroup might solicit and organize data relative to vendor selection. The sequencing of the selection process is critical: Product pricing should be considered after the vendor has cleared the quality and bioequivalence screens. Factors to consider when choosing a vendor are discussed. Because of the vast amount of information that is generated by the group's screening process, the group should develop tools to categorize and evaluate the data, including vendor quality profiles and bioequivalence screens. Some groups have established a probationary period before making a commitment to volume buying so that the group and the vendor can assess the other's value. A defined evaluation process informs the purchasing group's various publics--members, vendors, and competitors--of the group's quality assurance standards, thereby facilitating the vendor-selection process.