A group purchasing organization (GPO) combines the purchasing power of collective businesses to leverage better pricing, service levels, and account representation from suppliers. Leveraging a GPO increases your buying power and simplifies your buying process. The wide-reaching network of a GPO is challenging for an individual procurement professional to match.
A GPO allows the spend from various industries to combine and increase buying power. That way when you partner with a GPO and utilize GPO contracts, private enterprises can gain more spend under management and transform their supply chain.
Group purchasing organizations can narrow the scope of priorities for procurement as they take on and deliver on the most important value drivers. In our guide, “Reshaping the Future of Purchasing,” you’ll discover the benefits and value-added drivers that you'll gain through GPO membership:
- Greater savings, more quickly and for longer
- Reduced risk
- Streamlined and cost-effective procurement
- Products and services for optimized supply chain management
CASE STUDY: OMNIA Partners Beats the Competition with Winning Solutions
A $5B Manufacturing brand was interested in optimizing their recurring spend and consolidating agreements across 9+ spend categories. With a consultant they formalized a RFP to be sent to several GPOs that outlined these critical evaluation areas (and more):
- Category Coverage
- Total Cost Savings Potential
- Business Alignment with GPO Strategy
- Supplier Fit & Ability to Work within Current Incumbent Relationships
- Change Management & Implementation Support
- Onboarding Systems & Training
- Savings Tracking & Compliance Enforcement