Group Purchasing Organization (GPO)

A Group Purchasing Organization (GPO) leverages the collective purchasing power of a group of businesses, who spend in similar categories together, in order to achieve successful reductions from suppliers.

 

It is established to help organizations realize savings and efficiencies and to transform their supply chain by aggregating purchasing volume and using that leverage to negotiate better pricing, service levels, the best volume discounts from the suppliers, manufacturers, distributors you already buy from, for a wide range of products and service.

 

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Why Group Purchasing?

Most businesses only spend a modest amount in a particular category, like office supplies or courier delivery. Because purchasing is all about volume, the SMEs end up paying higher prices for the same products and services as compared with the big enterprises.

 

Yet, by leveraging the purchasing volume of our clients, we can negotiate lower prices and better services directly with their suppliers. Joining a GPO allows you to leverage the collective buying power of a group of people, meaning you can take advantage of those larger discounts without actually purchasing more. Hence this approach helps organizations in reducing costs and boosting greater savings.

 

The group purchasing method of sourcing motivates suppliers to give GPO members discounted pricing, but you’ll also save time and effort.

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Our Unique Approach

We act as an extension of your procurement team, with our transparent and value-driven efforts, adding another layer of expertise to managing your direct and indirect spend categories. We help your team to focus more on strategic procurement initiatives and organization’s goals, while we take care of spend management.

 

We cover all strategic spend categories across organizations, through indirect, direct materials, value-added services or outsourced procurement. Because of our strong relationships with our suppliers, service requests are elevated and contracts are pre-negotiated and hence, utilizing the group purchasing method of sourcing, the suppliers are also motivated to give GPO members discounted pricing.

 

As a group purchasing organization, our process is designed to increase your speed to savings, enhance your existing purchasing strategies, and find new ways to implement strategic spend management.

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How You'll Benefit From Group Purchasing Organization 

To leverage lower prices for massive volumes of goods, adopting a group-buying framework strategy will help you in :

• Superior pricing through unmatched leverage & purchasing power

• Greater savings, more quickly and for long term duration, in unmanaged areas of spend

• Improve long-standing contract savings and service-levels,

• Generates referable prices and contract terms

• Reduced procurement costs by aggregating the demand for non-strategic

       or indirect cost supplies and services

• Helps narrowing down the priorities for procurement team and frees up internal procurement resources, thus creating additional savings in terms of time and effort

• Reduced risk

• Benchmark results both on current contracts and overall market trends

• Streamlined and cost-effective procurement process

• Satisfy end-user stakeholders’ priorities, needs and goals

• Largest network of industry-leading suppliers and strategically sourced agreements

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