In January 2015, fitness centers saw a 55% increase in membership. According to Statista, it’s estimated based on previous years that over 80% of those who joined a gym in January will stop going by May. That is seven months of unused, paid membership they are leaving on the table, only rendering them half of the benefits they could have received from that partnership.
To avoid leaving that kind of opportunity and money on the table in your group purchasing partnership, we have created a guide to help you get the most out of your GPO year-round.
The first step to juicing every last savings drop from your GPO partnership is to assess where you are spending. Organize an in-depth dive of where your direct and indirect spend is going out the door and start the analysis process.
Compare your company’s spend side-by-side with the entire supplier’s manifest provided by your GPO. Is there overlap in needs and contracts available that aren’t being utilized?
For example, you might be using a GPO to purchase your office supplies, and you are happy with the savings it is yielding. Have you checked your GPO vendor contracts to see if there are other categories available you could take advantage of?
Here are UNA Purchasing’s top three contracts you might not be using:
- FedEx- Does your business spend on shipping? Why not get some of the lowest shipping rates available on air, ground, exporting and freight – including domestic and international services – and a host of value-added benefits and savings.
- Staples- Every company needs office supplies. Our members can save an average of 45% off list price for all office and janitorial supplies, furniture, equipment and managed services.
- Hotel Engine- Businesses of any size can now get access to corporate discount rates saving an average of 23% on over 100,000 hotels in 110+ countries. There are no membership fees or volume requirements, and businesses will save time and gain insight through Hotel Engine’s free-spending analytics and expense management tools.
Leverage is a powerful word. It just so happens that you have a procurement partner that can and is combing billions in spend to leverage and secure discounted contracts on a broad range of goods and services.
Just because you don’t see a service listed in your GPO’s contract list, does not mean that it’s out of reach. Take advantage of your purchasing partner and contact a representative to discuss contracting options. You might be surprised at the buying power and options you have at your disposal.
The end goal is savings. Saving money, saving time, saving your company the headache of contract negations; GPOs are in the business of savings. To ensure you are squeezing every cent out of your partnership with a GPO, consider the services that are offered in addition to cost savings.
UNA Purchasing Solutions, while saving an average of 22%, also offers cost comparison, supply chain management, customized membership programs, and data and analytics. These additional member benefits can add a lot of time back into your company’s budget, freeing up your time to focus on the bigger picture.
The last step is to find if at all possible, a GPO that offers their services for free. There is a GPO for you and chances are they can offer their services at no cost to you. Many GPOs, such as UNA Purchasing Solutions, don’t charge members a fee as they are paid a fee by the suppliers. With purchasing taken care of, you can reallocate your purchasing personnel to other larger projects and get the most out of your group purchasing partnership.