Welch Allyn GPO Members, Purchasing Welch Allyn Items On Contract - Quick Reference Guide - Manual (Page 2)

SO, YOUR GPO MEMBER WANTS TO
PURCHASE WELCH ALLYN PRODUCT ON CONTRACT?
Is the distributor an authorized Welch Allyn distributor providing trace sales and accepting rebates? If not, no contracted purchase is possible.
If the distributor is Welch Allyn authorized, do they have a distribution agreement with the GPO? If not, they cannot access contracted pricing
through Welch Allyn. They will need to solicit the GPO for a distribution agreement.
FAQs
How do I verify my customer is on a GPO/tier? Check with the Welch Allyn or your contracts
department.
What do I do if there is a discrepancy? Put your Contracts Department in touch with Welch Allyn
Contracts Department. Plan for 45 days to clean up.
Why 45 days?!?!? This 45-day requirement is something that our distributors, GPOs and
GPO members have requested and is written into GPO contracts and our distributor contract
requirements. This 45-day timeline gives all parties involved (customers, distributors, GPOs and
manufacturers) the necessary time for everyone to have the correct price loaded in their systems.
The volume of contracts, tier activations, etc., that occur every day from all the various
manufacturers and customers that come across the distributors contract administration departments
is massive. Rushing effective dates through ultimately causes a tremendous amount of credit and
rebills between the distributor and end user, distributor and manufacturer, distributor and GPO and
manufacturer and GPO. This is a huge added cost to all parties involved.
Can my customer use a promotion with GPO pricing? No. Not unless specified.
Can my customer choose not to use their GPO pricing in favor or a promotion? Unfortunately no.
What’s an “Authorized Distributor”? A distributor that has bid on and won, or has been granted a
distribution contract with a given GPO. Distributor must submit trace sales reports to Welch Allyn
and enter the GPO contract number in contract field on those reports.
Who has access to an IDN’s contract tier? Only owned or managed members of an IDN. Affiliates
are not granted this privilege.
How do I know if a customer is owned, managed or affiliated with an IDN? Check the GPO
roster, the customer’s website, or best… ASK the customer!
How do I deal with new construction within an IDN? If new construction involves a current GPO
member adding new sites, make sure that customer gets their new location(s) rostered far in
advance of initial order to ensure smooth purchase.
TERMINOLOGY
L.O.C. Letter of Commitment (paper!)  Customer picks GPO tier
(MedAssets & Amerinet only)
Price Activation Web enablement of an LOC document  Customer picks GPO
tier (all other GPOs), Welch Allyn validates (45 days)
I.C.C. Individual Customer Contract  Supplier-Customer Contract
without Distributor or GPO (pricing agreement must be signed)
Tier Agreed price level based on dollar volume (not unit volume)
and Class of Trade
Class of Trade Ambulatory Care vs. Acute vs. Long Term Care, etc.
© 2012 Welch Allyn MC9765
1. Distributor Rep must verify the correct pricing tier with their
Contracts Department and with the customer to ensure
agreement that the tier is appropriate to quote.
— If the tier is not verified by both parties, the Distributor’s
Contracts Department must verify the appropriate tier with the
GPO and load the correct tier for this customer into their system.
2. Distributor Contracts Department must contact the Welch Allyn
Contracts Department to verify that the price requested by the
distributor and/or customer is appropriate for the volume of
purchase they are looking to coordinate.
— If there is disagreement, the purchase must either be made at
Distributor Net Price (plus distributor markup) or:
• Contracts Departments will work together to fix the mistake
• Contracts Departments will work with GPO to re-roster the customer
• Contracts departments will move the tier the customer is coded to
• Welch Allyn Contracts Department will provide an Individual
Customer Contract (ICC)
• Distributor Rep/Welch Allyn Rep will prove that the purchase
qualifies for a higher tier based on an upsell of volume and customer
will apply to GPO for price activation of higher tier
PLAN 45 DAYS FOR ANY OF THESE ACTIVITIES!
3. Once there is agreement between the Distributor Contracts
Department, the Welch Allyn Contracts Department and the
Customer on what tier is appropriate for the purchase, the
Distributor Rep may quote the Welch Allyn GPO contracted price.
4. The Customer buys the product at the GPO price plus the
Distributor Markup percentage.
5. The Distributor pays Welch Allyn for the product at distributor
net price.
6. The Distributor requests a rebate credit from Welch Allyn.
7. Welch Allyn validates the legitimacy of the contracted sale/
appropriate tier.
8. Welch Allyn rebates back to the Distributor the difference
between distributor net price and the GPO price (less
Distributor Markup.)
9. Welch Allyn monitors tier performance to ensure the price
continues to be legitimate.
For questions or further assistance,
please email: [email protected]
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