A Group Purchasing Organization (GPO) can help your business grow. In the recent years, GPOs are becoming more popular due to the role they play in boosting efficiencies of business operations.
Group Purchasing Organization is an entity that solves procurement and sourcing concerns for businesses. They help by aggregating the purchasing power of businesses in order to enjoy big discounts and rebates from its vendors. As a business owner, you can be able to reduce the cost of operation, speed up procurement time and efficiency, and enjoy lower costs of transactions by joining a Group Purchasing Organization.
When you join a GPO, they will aggregate your needs with that of other buyers and negotiate for discounts and rebates on your behalf. You can significantly reduce the amount you spend on sourcing and procurement by working with a GPO.
However, before you choose a Group Purchasing Organization, there are a number of factors that you need to consider. Some of these factors include:
- Supply Chain Savings
Before you join any GPO, make sure you do an analysis to know the actual savings the particular organization will be able to produce. You will need to take into account every factor that affects pricing such as distribution cost, shipping cost, and other logistics.
- Contracting Model
There are different Group Purchasing Organizations and their contracting model varies. Don’t assume that all contracting models are the same. Some GPOs may only be able to offer just one contract in a particular product area. Find out what contracting model of your preferred GPO has and compare it with other GPOs.
- Consider a GPO in the Multifamily Industry
Joining a Group Purchasing Organization in a multifamily industry means that you will have access to more products that are directly related to your company’s everyday needs. This type of GPO will help you to save on industry-specific items. In fact, some of these companies use to have such items in stock. Certainly, you can boost the efficiency of your production process by leveraging such GPO.
- Consider GPO With the Right Vendors
Does your preferred GPO have the right vendors? You certainly need to know the type of vendors available to the GPO you have in mind. It is important that they have the right vendor so that you won’t have to go through the process of vetting them. You may need to check a list of the GPO’s vendors and also read their reviews; this will help you to understand them better.
- Top-Notched Customer and Advisory Services
The only reason to join a Group Purchasing Organization is to make your business easier. Thus, you need a GPO that can offer you top-notched services. Your GPO should be experienced enough to be able to offer advisory services as well.
These factors listed above will help you to make a great choice when you are looking for the perfect Group Purchasing Organization to join. Fortunately, PurchasingPlatform has all these qualities and more and have been named as the best Group Purchasing Organization in 2018.