You're always looking for out-of-the-box ways to innovate, improve efficiency, and reduce costs, but one solution you've probably never even heard of is partnering with a group purchasing organization.
According to recent Inc. and Entrepreneur articles, partnering with a GPO like UNA is a crucial, scalable, solution that will help your organization save across product categories — no budget freezing required.
Here's why joining a GPO should be your next strategic move according to the experts.
How a recent Inc. article describes working with a group purchasing organization:
It may sound too good to be true, but GPOs provide members with the same products they'd otherwise order themselves -- only at lower costs. A model pioneered more than a century ago by U.S. hospitals, GPOs leverage the buying power of their members to negotiate better rates on common goods. Unlike a century ago, however, GPOs now serve every industry imaginable.
Because of the scale and process improvements GPOs offer, they can cut operational expenses for their members between 15 and 20 percent, according to Anthony Clervi, president and CEO of UNA, a fast growing GPO. "Almost anything a business could need, GPOs can get for a better price," Clervi says. "Think printers, computers, company cars, desks, stationary, and even cleaning supplies." To maximize their savings, Clervi suggests choosing a GPO that recoups costs from the suppliers it partners with rather than charge members a service fee. [Emphasis added.]
The healthcare industry has long realized the financial benefits of purchasing as part of a group, and their wisdom is quickly spreading across sectors.
What Entrepreneur says about GPOs:
Corporate conglomerates spend so much that they can negotiate bulk rates that other companies can’t. But when you partner with a group purchasing organization (GPO), your business buys as part of a group. That means you get the same deep discounts without having to buy more. It’s why 96 to 98 percent of hospitals use GPOs. Luckily, though, GPOs aren’t limited to the healthcare industry. Today, nearly every business in every sector has access to GPOs.
Anthony Clervi, CEO of UNA, says when you join a GPO, you get product discounts of 20 percent or more. “You don’t need to hire category experts to save big on supplies,” Clervi says. “GPOs can deliver bargains across product categories every company uses.” As examples, Clervi points to UNA’s different discounts on rental cars, shipping, hotels, office supplies, and more. As you can see, GPOs can cover different sectors to save you time from looking all over the place. [Emphasis added.]
For organizations that don't have sizeable senior procurement teams, working with a GPO like UNA is a free and effective way to reduce indirect spend.
- How UNA helps businesses
- What is a GPO?
- Category Management: A Surprisingly Easy Way You Can Increase Savings
Saving your business money doesn't have to require drastic measures. It might be as simple as buying as part of a group.