If you're reading this -- congratulations -- you and your organization are already ahead of your peers. Group Purchasing Organizations (GPOs) are one of those best-kept secrets that all businesses should know about. The best GPOs increase your purchasing power, reduce your bottom line, and give you access to better contracts and suppliers -- for free. But most companies don't even know they're an option.
- What a GPO is
- How businesses benefit from partnering with a GPO
- And why they're not "too good to be true"
Don't have time for a video? Skip ahead to the key takeaways.
GPOs for business: key takeaways
#1. The most important things you need to know
- Almost anyone can join a GPO, and most are free
- They're very beneficial and very low-risk
- The best GPOs give you on-demand access to highly discounted contracts
- You should be able to select suppliers à la carte and cancel any time
#2. What is a GPO?
- A GPO is a buying solution (learn more here) kind of like Costco for B2B
- It's a"bulk" savings membership-style model, only you don’t have to pay a fee
- This combined buying method can help any business save big on direct and indirect spend
#3. How do businesses benefit from partnering with a GPO?
- Gaining leverage, GPO category spend is far higher than an individual business's
- Partnering scales your organization's buying power
- Accessing contracts and discounts you could never negotiate on your own
- Increasing revenue by decreasing indirect spend
- Saving time by not having to set volume, pricing, and terms
- Getting free à la carte benefits and contracts
#4. Why GPOs aren't "too good to be true"
- Most GPOs make money from their suppliers, keeping it free for organizations
- So businesses and GPOs actually have symbiotic, mutually beneficial relationships
- The problem isn't selling businesses on working with a GPO (it's a clear cut win-win)
- The problem is most companies don't know GPOs are even available
Bottom line, if you don't have the time, resources, indirect spend, or the manpower in certain categories, consider adding a GPO partner to your team. It's just another tool in your belt. As Anthony said, "It's no cost, and we go to work for you."