As purchasing professionals with strategic expertise, we know you have a lot to offer your company. But you’re constantly tasked to do more with less.
The good news is that when procurement and supply chain professionals add a group purchasing program to your team, you find even more innovative ways to accomplish everything on your to-do list by optimizing the GPO contract.
Group purchasing organizations (GPOs) can narrow the scope of priorities for procurement as they take on and deliver on the most important value drivers. Find out how our diverse group purchasing programs can provide immense value to your organization and enhance your procurement world.
As organizations focus on higher-level objectives, sourcing teams are being stretched thin and face diminishing returns on their everyday responsibilities. Today, procurement is expected to be a more strategic and trusted business partner that enables business success while reducing costs. GPOs vet the suppliers, negotiate the programs and locate valuable opportunities so members can hit the sourcing ground running.
Some strategic categories can take three months or even longer to finalize the contract. This causes lost savings to add up during the substantial amount of time required to reach an agreement and implement. Taking the category to a GPO can result in a faster route to more significant savings through programs prebuilt on aggregated group spend.
GPOs stay on top of pricing trends and benchmark their own rates. Members benefit from this data, especially when GPOs are used to close gaps in categories where procurement’s availability to assist is limited. GPOs establish an assessment process to help clients understand their potential savings and make an informed business decision on whether to leverage the category or to source on their own, making their cost of doing business lower.
Market-leading companies recognize that allocating up to 500 hours of internal resource time to execute a competitive bid or RFP is inefficient. When you consider the time required to gather stakeholder requirements, capture and analyze data, navigate legal requirements, implement, track results and establish an ongoing supplier management process, it becomes difficult to justify a “do it yourself” model.