OMNIA Partners Blog

5 Group Purchasing Best Practices for Procurement Leaders

Posted by OMNIA Partners on August 14, 2019


5-procurement-tips-1Group purchasing helps private organizations of all sizes spend strategically while delivering efficiencies. All procurement leaders strive to stay on top of procurement best practices and gain the most out of their resources.

These five tips will help you gain the most out of your group purchasing partnership.

1. Choose the Right Group Purchasing Partner

Group Purchasing Organizations (GPOs) offer a range of solutions and services, and differ in their approach. Before selecting a GPO to partner with, carefully evaluate their track record and capabilities. Ensure that they can help your organization meet its purchasing goals. They should follow procurement process best practices, which includes being fully transparent and offering programs that have been pre-negotiated through a thorough and strategic sourcing process. This process should include research and analysis, market intelligence and ongoing contract management. Finally, seek a partner with open and clear communication that will act as an extension of your procurement team.

2. GPOs Should Be (And Maintain) Competitive

Group purchasing removes extensive time and effort from the procurement process, but it should also deliver the best value. GPOs should help you bypass the RFP process and deliver more than cost savings through service level agreements and terms and conditions. Review the offerings available through the GPO to locate the program agreement that satisfies your unique needs. Most importantly, partner with a GPO that does not stop when there is a signature on said contract. A true partner will continue to monitor and manage that program to avoid price-creep and maintains competitiveness throughout the contract lifecycle.

3. Use GPOs Optimally

A modern GPO will partner with members to understand all stakeholder values and goals. Through this partnership a GPO will be able to help procurement leaders understand where and in which categories a GPO makes strategic sense: what spend should be managed via the GPO program and what spend the procurement pro can manage strategically.

7 GPO Facts

4. Mitigate Risk

Generally, private organizations need to maintain compliance with various regulations, like OSHA specifications for FRC, PPE, or general working conditions. Not maintaining compliance under changing regulations puts your organization, your workers, and your bottom-line revenue at great risk. By partnering with a GPO you gain access to leading supplier partners who can help increase efficiencies and provide solutions that meet (or exceed) legal regulations. This will save you cost, help you avoid expensive fines, cost downtime and most important protect your workers.

5. Leverage GPO Program Resources

Strong GPO programs will provide expert resources to assist members and act as an extension of their team. If you have a question on category solutions for your particular requirements, need details on a specific program offering, or need assistance working with the supplier, your regional manager is available to assist and serve as a liaison to the supplier while helping you uncover the most strategic spend options to satisfy your goals.

Final Takeaway

If you are a procurement leader for a private enterprise, organization or manufacturer , it’s your responsibility to use your GPO’s resources to your greatest advantage. By taking the time to choose the right GPO partner, you can be confident that you’ll save money, improve efficiencies and meet your procurement goals for a competitive advantage.

More Information

To learn more about procurement best practices that make the most of group purchasing, contact OMNIA Partners, Private Sector.


Topics: Group Purchasing Organization, Procurement, Leadership

Subscribe to Our Blog

Recent Posts

Posts by Tag

see all