Price Activation Process

Learn about the price activation process, through which a customer requests eligibility for qualifying contracts tiers.

⟶ 14 Days (Avg) ⟶

Price Activation Request

Submission of PA in GPO Portal or other electronic means. Customer submits GPO IDs + contract details such as which tier request is for, distributor, facility, etc.

Note: Tier 1 does not require PA

Manufacturer LOC Process Begins

Contract Analyst determines contract impacted, potentially matches to MFG customer ID, checks for GPO alignment, initiates approval process

Contract Activation

Supplier approves the LOC in the GPO portal, alerting the customer to their now activated pricing (or denial)

Contract Communication (EDI 845)

MFG sends contract notification to distributors to be loaded according to the approved PA request

Definitions

• EDI: Electronic data interchange, an electronic communication system that provides standards for exchanging data via any electronic means
• GPO: Group purchasing organization, the most prevalent kind of ‘buyer group’
• LOC: The abbreviation for ‘letter of commitment’ that a member would initiate on a contract asking the vendor to approve a tier or other price that the member would receive
• MFG: Manufacturer
• PA: Price activation