Benefits of a Group Purchasing Organization (GPO)

How a GPO Benefits Members

A group purchasing organization (GPO) should be part of every procurement professional's strategy for success. Purchasers are overstretched, managing millions of dollars across a complex spend cube with numerous categories. GPOs provide inherent value including:

  • Membership Leverage - GPOs create a membership base comprised of companies seeking to channel spend using the GPO's agreements. The combined spend of these companies creates leverage. That leverage is what motivates suppliers to offer their best pricing and service levels to the GPO.

  • Better Pricing and Contract Terms - With a steady stream of spend in place, GPOs can source agreements with the right suppliers – or those that can provide better pricing and contract terms than GPO members can achieve on their own.

  • Continuous Improvement Further Mitigates Risk - Contracts are constantly managed by the GPO. As more members join and more spend flows through the agreements, GPOs can negotiate even deeper discounts and/or improved terms and conditions with suppliers. By this point, the GPO can further mitigate risk and create a path toward continuous improvement by engaging with multiple people at multiple levels throughout supplier organizations.

Taking the benefits of a GPO even further, this infographic will illustrate what we call the "OMNIA Partners Difference," the unique value only OMNIA Partners can bring to the marketplace. See how the benefits of a GPO and streamline your procurement success strategy.


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GPO Benefits for Members

 

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