What Is a Group Purchasing Organization?

group purchasing organizationA group purchasing organization (GPO) uses the purchasing power of a group of businesses (its members) to negotiate better pricing, service levels and account representation from vendors (its suppliers). In return, suppliers gain increased market share and access to decision-makers at customer organizations throughout their industries.

How Does a GPO Work?

Your most strategic projects get pushed aside. Your CFO says you’re not saving enough. You don’t have enough time to manage it all. Sound familiar?

This is where a group purchasing organization comes in. Companies join GPOs to help solve procurement and sourcing concerns. GPOs save you time, money and resources so you can concentrate on the projects that are most important to your company’s bottom line.

Industries Where GPOs Exist

GPOs operate in specific industries such as: 

  • Government
  • Healthcare
  • Hospitality
  • Foodservice
  • Electrical
  • Plumbing
  • Non-profits
  • Industrial manufacturing
  • Retail
  • Education

What enables GPOs to thrive in these sectors is the sheer number of companies that occupy the space. By combining the spend of these companies, both the members' buying power and the suppliers' market share become greater.

The OMNIA Partners Difference

what is a gpo?OMNIA Partners is the largest and most experienced organization in group purchasing. Our members and suppliers benefit from the power and influence we have across a multitude of industries, and the extensive access they get to products, services and customers. This creates unparalleled value, unmatched resources and streamlined procurement solutions members and suppliers can trust to optimize their businesses.

OMNIA Partners offers a comprehensive portfolio of sourcing solutions and partnerships. With over 125 direct material suppliers featuring commodities, engineered components, services and supplies, as well as over 50 world-class indirect supply and service offerings, OMNIA Partners is the leading resource in procurement.

Our buying power translates into savings across the board and inherent value beyond cost. Because of our strong relationships with our supplier partners, service requests are elevated and contracts are pre-negotiated.

This means members can focus on strategic business initiatives while we take care of spend management. In other words, OMNIA Partners is an extension of your procurement team.

Cost Savings

OMNIA Partners members have realized significant average savings in these sample categories:

Direct Goods Indirect Goods Services
Steel 12% MRO 28% Freight 18%
Resin 10% Packaging 20% IT Hardware 28%