What is a GPO?

A Simple Guide on Group Purchasing (GPO)

A Group Purchasing Organization (GPO) utilizes the aggregated purchasing power its member-base, from small-midsized businesses to corporations and associations to negotiated powerful discounts to offer to its members.

GPO Benefits

Quality Control

Maintain quality items at corporate level pricing, and increase profits.

Vendor Relationships

No need to change current vendor relationships, Or access new relationships

No Volume Requirements

Contracts our pre-negotiated. Members do not have to worry about any volume commitments

Buying Power

Members access pricing based on the purchasing power off all its members

How GPO’s Work

GPO Members

Thousands of businesses are all connected  to leverage our massive purchasing power.

Supplier Negotiation

Negotiations start on a contract based on the needs of a GPO’s member-base.

Secure Contracted Pricing

Contracted pricing is secured and terms are approved for roll-out.

Significant Savings

Members are able to take advantage of the deep savings direct with supplier.

How Your GPO Puts You Ahead of Competition

Here are the top ways a group purchasing organization gives you an advantage over your competitors:

Subsidized Prices

Joining a purchasing organization enables you to get goods at subsidized prices. The group bargaining power will lobby the suppliers to release goods at cheaper prices. This in return will enable you to stock the products at discounted prices.

This puts you ahead of your competitors who might not necessarily have gotten their goods at low prices.

Once you beat the competition and are able to price your products lowly, your business is on its way to thriving.

Better Quality Goods

The purchasing power of the group can as well enable you to get quality goods. It is possible that experienced dealers exist in your purchasing organization.

These dealers will be able to push the suppliers to sell to you quality products as they are already aware of counterfeit products.

Being in such a group will cause you to get quality goods. Your customers, on the other hand, will always be happy with the quality of the goods you sell and increase your customer retention rate.

Ease of Access

Needless to say, sourcing for items as a group is a lot easier than doing it individually as a business. Whether you are running the business alone or with the help of a few employees, it will be easier to buy from the group organization.

The more easily you can access items for your business to restock the inventory the more assured you are that your stock is unlikely to be depleted.

While some of your competitors have a problem restocking, you will be a step ahead to luring customers to your business.

Constant Supply

A purchasing organization does not only source for products for its members but also look out for factors that may inhibit product supply and sort them out.

It could be disloyal suppliers or unfavorable pricing. These are some problems that businesses encounter and are unable to meet the demands of their customers. Being in a buying society will help you avert these and have a constant supply of your products.

The knowledge that a purchasing entity will sort out all your orders gives you the liberty to focus on other important aspects of your business.

Maximized Profit

The primary role of any business is to make profits. With a purchasing organization, you can source your products easily hence saving on several business overheads.

Instead of using middlemen who in the end may swindle you off your cash, you have a safe platform to make your purchases.

In the event that your competitors are not part of a purchasing organization, you will definitely be ahead of them in the profit ranking.

Optimized Resource Utilization

Did you know that your business greatly depends on the level at which your employees are committed to working on their roles in the business? Your employees are your main resource.

You might have several employees in your various department but unless each is of them is working on their roles, you won’t make much progress as a business.

One of the easiest way to avoid time wasting and maximize employees output is to optimize supplier management.  This is greatly boosted by being in a purchasing organization.

This is because rarely will the business lack essentials needed to run its operations meaning that employees are well supplied with tools for delivering the work.

Mitigated Risks on Wrongful Purchases

Buying under a corporation gives you a better security in case your batch is wrongfully delivered or you need to change your order.

Dealing with a one-time supplier may make this process a bit tedious as;

  1. Work-relationship has not been established
  2. You do not have a body lobbying for your needs
  3. The supplier may not encourage or have a return policy in place

In a purchasing organization, you have a team handling such issues, giving you time to concentrate on your business.

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