WATERLOO, Iowa (May 2, 2018)—VGM Fulfillment, a division of VGM Group, Inc., announced the launch of its new compression stocking resupply program.
The addition of a flexible enterprise resource planning system and more than 20,000 square feet of additional warehouse and office space has led to the expansion the new program, complimenting VGM Fulfillment’s existing CPAP resupply program, which packs and ships more than two million orders to customers’ doorsteps annually.
“We are excited to expand our offering of services outside of CPAP fulfillment to include compression stocking fulfillment,” said Jeremy Stolz, president of VGM Fulfillment. “Similar to CPAP, the compression market is growing. This new service allows the opportunity for seamless delivery or resupply of compression stockings directly to patients or to a provider’s store.”
Compression products are used to treat a variety of chronic conditions including venous diseases, joint and muscle pain and stiffness, amputations and lymphedema. Due to the increase in diabetic and elderly populations, the compression market is booming. According to a report by research and consulting firm GBI Research, the compression therapy market in the U.S. is forecasted to grow to $1.6 billion in 2019—an estimated 6 percent compound annual growth rate since 2012.
According to Stolz, those statistics present an opportunity for businesses currently offering compression stockings and for those thinking of diversifying into a new product category.
“With our resupply program, compression garments and other products are an opportunity for providers to expand their caretailing or cash sales offerings—without having to carry a large inventory and take up valuable showroom space,” said Stolz. “Patients with lymphedema or those recovering from amputations use compression therapy to manage and accelerate wound healing. These customers and others are looking for effective and stylish offerings.”
VGM Fulfillment’s warehouse stocks supplies offered by participating vendors, creating a lean way for providers to purchase supplies through consignment. Providers submit an order. The order is shipped and typically arrives to the patient three days later. The vendor will then bill the provider for the product and VGM bills for shipping and handling.
“With our model, you don’t pay for product until you’ve already sold it,” added Stolz.
VGM Fulfillment’s new compression resupply program was introduced at Medtrade Spring and to existing resupply customers in April. As the program gains momentum, plans are to build upon its list of participating manufacturers to accommodate existing relationships between vendors and DMEPOS providers.
“We’re still aggressively pursuing additional compression stocking manufacturers to participate in the program,” mentioned Aram Susong, VGM Fulfillment’s communication and East Coast sales manager. “To date, we have seven manufacturers signed on. Similar to our CPAP program, providers will retain their negotiated pricing with the manufacturer they currently purchase from so that relationship is maintained.”
Visit vgmfulfillment.com for more information.
