What is a group purchasing organization (GPO) and some of their benefits?

December 28th, 2015

Detailing group purchasing organizations.

 

 Today’s post is by Tyler Walther; Account Manager at SafeSourcing

Have you heard the term GPO, group purchasing organization, or purchasing consortium? What is that? A group purchasing organization is a partnership that is created to improve the purchasing power of a group of businesses allowing them to attain greater discounts from vendors based on the collective buying power of the GPO members.

Of course a GPO’s primary goal is to get members the best price for their products being fulfilled; quality must be equally as important. GPO’s supplier bases traditionally incur a more rigorous vetting process helping to ensure the credibility and value of the supplier, as well as required product quality. A GPO goes beyond item price alone and considers overall value, which reflects a greater savings in the long term.

You can still keep that direct relationship with your vendors. Becoming a member of a GPO does not mean you eliminate your direct connection with your suppliers. GPO members can still receive drop shipments from their supplier. The GPO partner will still be able to contact the supplier when issues arise and still have the opportunity for personal meetings when required.

Not only do GPOs leverage the purchasing power of multiple entities, they also bring balance to the purchasing model because they already have relationships with vendors and suppliers.

 

We enjoy bringing this blog to you every week and hope you find value in it. Look to SafeSourcing for assistance with your GPO. For more information on how we can help you with your procurement needs or on our “Risk Free” trial program, please contact a SafeSourcing Customer Service Representative. We have an entire customer services team waiting to assist you today.

 

We look forward to your comments. 

 

 

 

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