What is the Next Evolution in Group Buying?
If there’s one thing most businesses understand it’s the pain of trying to stick to your office supply budget. It’s a real dilemma. You buy only what you need and end up paying steep prices. Or you buy for bulk discounts and end up with far more than you require.
In a perfect world, your business could get the supplies it needs while enjoying the benefits of mass purchasing power.
And now you can.
Group Purchasing Organizations (GPOs) are revolutionizing the way companies order supplies. They provide all the advantages of group purchasing to obtain bulk discounts.
Without having to overstock your supply cupboard and go over budget!
How GPOs Work?
GPOs work by combining member orders to take advantage of substantial group discounts offered by suppliers.
How? Through Increased buying power
In other words, the sheer numbers of the GPO’s customer base motivate suppliers to sell at discounted prices. It works to everyone’s advantage. Businesses can take advantage of great pricing. And suppliers get the benefit of access to a surefire market segment.
For addition information view our What is a GPO Page
What’s in it for the GPO?
Some GPOs are free to join but charge a fee for their services. Others receive a fee from the suppliers they deal with in return for access to the market.
Either way, GPOs must come up with a sustainable model to continue to offer their services.
In doing so, they often provide customers with other benefits as well. Support in managing the supply chain, cost analysis tools, and procurement partnerships are just a few examples.
GPOs also help you decrease time and labor on RFPs.
Who Uses GPOs
GPOs cater to companies across a variety of industries, including:
- Agricultural Outfits
- Industrial Companies
- Not-for-Profit Organizations
- Retail and Grocery Chains
- Small Businesses
- Healthcare Providers
The list goes on. As it continues to grow, GPOs are adding more and more industries to their client lists all the time. After all, who doesn’t need to save money on office supplies and other daily products and services by taking advantage of increased buying power!
The Future of Group Purchasing? (GPO)
With all the benefits of GPOs, they’ve got a big future ahead of them. GPOs provide incredible value. By offering customers increased buying power and suppliers access to large markets, they’re a win for everyone.
Businesses will always need to control costs. Which means these partnerships will continue to flourish. If you’re interested in increasing your buying power and opening opportunities for your business, you should be using a GPO.
A good GPO will save you money. It will increase the quality of your office supplies. And in some cases, it will help you build profitable vendor relationships. The benefits are enormous.
The future of GPOs is unfolding to include a multitude of new industries and further value-added support for clients. Your organization is sure to profit.
Want to know more about what a great GPO can do for you? Contact the team at MT Purchasing for more information today!