What is a Group Purchasing Organization?
A group purchasing organization (GPO) primarily exist for one simple, yet compelling reason: to help businesses interested in buying similar products gain leverage through combined purchasing power. That is why the GPO model is quickly gaining adoption within leading procurement teams. By combining the purchasing power of a collective of businesses to leverage better pricing, service levels, and account representation from suppliers group purchasing allows purchasing professionals to simplify their buying process and increase buying power. In return suppliers gain increased market share and better buyer relationships.
A group purchasing organization allows the spend from all of these 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.
How You'll Benefit From a Group Purchasing Organization (GPO)
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