It’s December again. The Holidays are upon us and it’s time to close out another year and prepare for the next one. Annual recaps to me are kind of bittersweet. Every year has its ebbs and flows, wins and losses, opportunities, both achieved and missed. But ultimately you record your results, see how you fared, analyze, strategize and plan for the future. Regardless of the results, there can be excitement for the future and what comes next. That is, of course, if you are appropriately positioned for it. As you read this review and plans for 2024, I think you will see that “your” group, AOPD, is prepared and excited for 2024.
We all are keenly aware of our challenges. Secular decline in traditional OP. Economic uncertainty. An election year (oh boy!). Stubborn inflation. But, for AOPD, in our little corner of the world, we think there is reason for optimism and opportunity.
So, what has been happening at AOPD?
Engage 23 Annual Meeting
AOPD continues to get outstanding reviews of its Engage Annual Meetings and 2023 was no exception. Several new dealer members and business partners attended this year. Many commented that this was one of the best meetings they had ever attended. One new member, an industry veteran and long-time IDC dealer, said he had been going to meetings like this for the last 15 years and this was the best. We think we have settled on a strong format with the addition of the Group Marketing Workshops to balance the One-to-One’s. The engagement between dealers and business partners was fantastic. That is what creates great meetings!
2023 Sales Growth
By our standards AOPD had an OK sales year. We should be up around 1-2% overall. The reason I say “ok by our standards” is we were up 18% last year and have only had two “down” years (the pandemic years in 2020 and 2021) in the last decade. So, we are used to strong sales in a positive direction. We did OK.
AOPD Member Growth
AOPD added five new dealers in 2023 on top of four new ones in 2022. We continue to have some consolidation of dealers, even amongst our own group. We currently stand at 70 Dealer members and 22 Supplier Business Partners. We have several dealers currently interested, so we expect some new additions early in 2024. We didn’t add as many new commercial contracts as usual, but AOPD commercial, “dealer-owned” contract business was up a solid 12% in 2023 through October.
Healthcare Success
The new Vizient contract continues to expand, drawing new dealers. Projected sales for our first full year are a little over $4M. Contrast that to our first year with Premier back in 2009 at $840,000! And speaking of Premier, we were concerned that it would suffer this year with all the attention that has gone into Vizient, but Premier is up 11% for 2023, projected at $18.3M! Also, with Essendant’s recent exit from Premier, we have assisted in transitioning some of their dealers and business to our contract. AOPD healthcare business has had another outstanding year. Kudos to Betsy Hughes for all she is doing to help our dealers and business partners win with AOPD healthcare contracts. Way to go, Betsy and AOPD Team!
Successful Transition of NCPA Contract to OMNIA Partners
As you know, OMNIA Partners, the largest public sector cooperative in the US, acquired NCPA at the start of 2023. We have undergone a successful transition this year, with our NCPA contract now fully branded as OMNIA . We are having regular cadence calls with OMNIA staff, providing training and new opportunities for our dealers with full access to OMNIA resources.
Recently, we launched the OMNIA Furniture Project to give our dealers new tools to proactively promote furniture sales to OMNIA members. We expect exciting things from this program for AOPD members in 2024. Thanks to Tom Buxton for his hard work with OMNIA during this transition.
AFFLINK Agreement
AOPD recently rolled out a reciprocal membership agreement with Jan/San, packaging, and foodservice group AFFLINK. Our channel has consistently pushed product category expansion into Jan/San, furniture, and other adjacent categories to further growth opportunities. This agreement shows that AOPD is serious about helping its members become “real players” in the Jan/San space. AFFLINK can provide the right tools as is evidenced by 12-15 AOPD dealers that have become AFFLINK members or affiliates even prior to this agreement. This is another exciting initiative for 2024. Thanks again to Tom Buxton for his efforts to get this partnership on AOPD’s radar and help bring it to fruition.
I could continue with more highlights, but this article is getting a little lengthy and I want you to stay with me to the end. Almost there!
Looking Ahead
AOPD had a nice year in 2023. Again, the only down years in the last decade were the two pandemic years. We hope to build on the progress coming out of Covid to further expand in 2024. So, here are the key initiatives for the new year.
- Healthcare – Continue to grow. Keep expanding Vizient and grow Premier and OrthoForum.
- Public Sector – Continue to learn more about and further deploy OMNIA Partners resources to grow that business. Share success stories with dealers and OMNIA sales representatives.
- Expand AOPD furniture strategy through the OMNIA Furniture Initiative and by adding furniture business partners.
- Expand the AFFLINK partnership and help dealers grow their Jan/San business.
- Continue to add dealers and expand coverage. Even with AOPD’s extensive coverage today there are still gaps where healthcare and public sector facilities want to do business with AOPD.
- Continue to position AOPD as a viable independent alternative to the big boxes and Amazon by further developing social media and marketing content. For an independent network like AOPD that takes a village, both dealers and business partners, working creatively together.
Hope you have enjoyed catching up with us with our 2023 Year In Review and a look ahead to 2024. Wishing each of you and your families a very Merry Christmas and a Happy Holiday Season!
Warm regards,
D. Mark Leazer
Executive Director