One of the biggest challenges purchasing professionals are met with every single day is locating enough resources to meet the demands of the job. It seems like procurement is being asked to do more and more each passing year, causing it to further stretch the resources it currently has at its disposal. Buyers are then forced to come up with creative and innovative methods to corral this predicament. Some of the savviest procurement professionals will tell you, the easiest way to get some much needed help is to join a group purchasing organization.
A GPO is an entity created to solve sourcing concerns by leveraging the purchasing power of a collection of businesses, to obtain reduced pricing from vendors based on the combined volume purchased by the group. In addition to the savings on materials, components, and services, GPOs expand your network so you’re no longer in the fight by yourself. Here are some ways GPOs can get you the relief you need when resources are looking thin:
Expand your Supply Base
Membership in a GPO is coveted, so not just any ole supplier is permitted access. GPOs heavily vet vendors before granting membership to ensure each one meets world-class criteria. And once the supplier is in, it is constantly monitored and rated so that these standards are continually met. GPOs take measures to create a robust supply base offering so that members have the majority of their sourcing needs tended to, and in some instances with multiple options per each category. Nowhere else can a manufacturer access a network the size and quality that a group purchasing organization can offer.
Grow your Professional Community
GPOs are also a brilliant way to turn one person into hundreds. GPOs regularly host conferences where purchasing professionals come together to talk shop, network, and exchange ideas for the future. Members in a group purchasing organization have shared goals and find that by joining forces, everyone has a better shot to achieve them. In addition to the conferences, there are committees, meetings and events that bring thought leaders together to create a culture of knowledge abundance.
Multiply your Solution Options
With this expanded professional community, comes the ability to grow your business. GPOs contain different industries, different cultures, different tools, and thus different ways of eyeing the same problem. When your resources sputter in-house, they can blossom in your group purchasing organization network. You gain access to solutions you didn’t previously know existed and now couldn’t possibly live without. And you find resources that can help you finally get to those revenue producing projects and process improvements that you just couldn’t do alone.