Group Purchasing Organisations are third-party entities that negotiate purchasing agreements with suppliers on behalf of their members. By pooling the purchasing power of their members, GPOs are able to negotiate better pricing and contract terms than individual businesses would be able to achieve on their own.
GPOs are commonly used in industries such as Healthcare, Hospitality, Construction, Housing, and manufacturing, where the cost of goods and services can be high and purchasing decisions can be complex. However, GPOs are not limited to these industries and can benefit any business that requires the procurement of goods and services.
Benefits of Using a Group Purchasing Organisation
There are many benefits to using a GPO, including:
- Cost savings: By negotiating purchasing agreements on behalf of their members, GPOs are able to achieve lower pricing than individual businesses would be able to achieve on their own.
- Time savings: Using a GPO can reduce the time and effort required to research and negotiate purchasing agreements, allowing businesses to focus on their core operations.
- Access to a wider range of suppliers: GPOs often have established relationships with a wide range of suppliers, giving businesses access to a greater selection of goods and services.
- Improved contract terms: GPOs are able to negotiate favourable contract terms, such as payment and delivery terms, on behalf of their members.
- Professional expertise: GPOs have purchasing experts who are experienced in negotiating purchasing agreements and can provide guidance and support to businesses.
Choosing the Right Group Purchasing Organisation
When choosing a GPO, it is important to consider factors such as the industry focus of the GPO, the range of suppliers it works with, and the level of support and expertise it can provide.
The GPOs we work with understand technology and how they can utilise Platforms like Catalog360 to ensure their members always get the best deals, we work with businesses in a variety of industries and understand how to connect the Vendor community to the business directly. Leverage the negotiation: Previous experience has told us that delivering committed contracts using accurate spend information delivers significantly higher savings for your customers.
No more downloading individual spreadsheets or calling around asking about a contracted price. Simply ask the customers to login to Catalog360 and find the contracted items at your fingertips.
Contact us today to learn more about how we can help your GPO to ultimately deliver the customer experience like no other.