SGA Dental Partners

Procurement Analysis — Gen4 vs Modis vs SGA

Source: Jun 2025 – Feb 2026 (9 months) | Annualized ×12/9 | v10.2
Price Index (SGA = 100 Baseline)
Best Price Win Rate (4,001 Multi-Entity SKUs)
Key Finding
Gen4 wins 55.6% of multi-entity price comparisons and is 3.4% cheaper than SGA overall (7.4% cheaper ex-implant). Modis is 12.1% more expensive across the board. Standardizing every multi-entity SKU to the best price across all 3 entities yields $1.19M in annualized savings before any renegotiation leverage.
$ Top Savings Drivers (Annualized)
→ Action Plan — Negotiation Sequence
1
Price Standardization
Bid every SKU off whoever currently has the BEST price across all 3 entities. Anchor negotiations to the lowest existing price — not a discount off current.
$1.19M annualized
2
Tier 1 Manufacturer Negotiations
Target BioHorizons ($148K), Henry Schein Infection Control ($97K), Straumann ($77K), Colgate ($76K), Neodent ($38K). Use combined entity volume as leverage.
Top 5 = $436K opportunity
3
Prime Vendor Agreements
Negotiate 2% rebate on all Henry Schein and Patterson spend using consolidated 260-practice purchasing power.
$330K annualized
4
Formulary Consolidation
Standardize disposable and hygiene product SKUs to single supplier contracts across all practices.
$700K estimated
5
Reconvene — Jordan + Kyle
Validate findings with corrected data, then build negotiation execution timeline with procurement team.
Price Index by Category — Gen4 vs Modis (SGA = 100)
Each dot shows the spend-weighted price index. Hover for details. Green dot = Gen4, Purple dot = Modis. Center line = SGA baseline.
Gen4 Index
Modis Index
SGA = 100 (baseline)
Range: 70 – 130
Category Detail
Top 50 SKUs by Annualized Savings
Best-price standardization across all entities
Multi-Entity SKU Overlap
SKU Overlap Treemap
Spend Distribution by Overlap
Top 15 Manufacturers by Combined Spend
Manufacturer Detail
Top 20 Distributors
Strategy
Bid every SKU off whoever has the BEST price across all 3 entities. Use the combined purchasing power of 260+ practices to negotiate further discounts on Henry Schein (2%), Patterson (2%), and consolidate disposable and hygiene categories.
Potential Savings Waterfall
Annualized savings opportunity — stacked running total
Top 15 Negotiation Targets
Methodology & Data Notes

Data Period

June 2025 through February 2026 (9 months). All dollar figures are 9-month actuals unless labeled "Annualized," in which case they are multiplied by 12/9 (1.333x).

SKU Pricing Algorithm

For each entity-SKU combination, we use the most recent purchase price with a 25% anomaly protection gate:

  • If the most recent price deviates more than 25% from the all-time mode price for that SKU, we fall back to the mode price.
  • This protects against one-off pricing errors, promotional pricing, or data entry mistakes.

Price Index Calculation

The Price Index uses SGA as the 100 baseline. It is spend-weighted:

Index = SUMPRODUCT(entity_price * entity_qty) / SUMPRODUCT(sga_price * entity_qty) * 100

  • A value below 100 means the entity pays less than SGA (cheaper).
  • A value above 100 means the entity pays more than SGA (more expensive).
  • "Ex-Implant" indices exclude the Surgical & Implant Products category, which has unique pricing dynamics.

Exclusions

  • Shipping & freight charges are excluded from all spend and pricing calculations.
  • 21 price outlier SKUs where the price ratio between entities was ≥ 20x are excluded to prevent distortion.

Savings Calculation

For each multi-entity SKU (purchased by 2+ entities):

Savings = SUM( (entity_spend - best_price * entity_qty) )

This represents the savings if every entity purchased at the best available price across all three entities. Only multi-entity SKUs contribute to savings (single-entity SKUs have no comparison point).

Win Rate

For each multi-entity SKU, the entity with the lowest price "wins." Win rates show the percentage of the 4,001 multi-entity SKUs where each entity has the best price.

Potential Savings Components

  • Price Standardization ($1.19M): Moving every multi-entity SKU to the best available price.
  • Henry Schein 2% ($249K): Negotiating 2% off the combined Henry Schein spend using consolidated volume.
  • Patterson 2% ($81K): Negotiating 2% off the combined Patterson spend.
  • Disposable Consolidation ($400K): Standardizing disposable SKUs across all practices to a single supplier contract.
  • Hygiene Consolidation ($300K): Standardizing hygiene product SKUs across all practices.