The number of big and small businesses joining Group Purchasing organization (GPO) in 2018 has jumped through the roof. Group purchasing is still a new concept online. This practice allows different organizations both big and small to enjoy the benefits of buying in bulk by joining forces together using a purchasing platform.
Group Purchasing Organizations leverage the combined purchasing power of multiple businesses to allow each business to enjoy reduced cost, faster procurement, and less transaction and operational cost. GPOs can bring balance to the negotiating equation since they can easily tap into their relationships with vendors and suppliers.
2018 has seen so many businesses joining GPOs. If your organization is yet to start making use of a Group Purchasing Organization, it is not too late for you yet. You can join today to start enjoying benefits that include:
- Cost Savings
You will enjoy the benefits of upfront savings from higher committed volume and negotiated discount when you join your purchasing power with other businesses. A popular GPO such as PurchasingPlatform.com already has established vendors and suppliers that they can leverage to help you enjoy lower prices.
- Efficient Supply Chain Management
Small businesses always struggle with the supply chain management. For instance, new startups with no relationship with suppliers may find it difficult affording the price of getting items from suppliers. An established GPO can be able to provide cost-avoidance solutions to these small businesses and new startups by helping them standardize and streamline their purchasing.
- Cost Comparison Analysis
No doubt, understanding purchasing and procurement status can be a big challenge and time-consuming process, especially for small businesses. GPOs have in-house experts that will help you comb through your data, give you better comparison analysis, and analyze your savings.
- Labor Savings/Increased Purchasing Power.
GPOs such as PurchasingPlatform often work with prime distributors. This means you will be able to save on the cost of labor (fewer invoices and checks to write) and enjoy increased purchasing power.
- Faster Growth
By joining purchasing power with an established business, new startups can be able to grow faster. They can even use this process to build a relationship/partnership with other businesses which can help them grow faster.
Want to take your business to the next level by joining a Group Purchasing Organization? Click here to speak to get a customized plan from one of our experts