Running an organization takes a lot of work and oftentimes it’s hard to find resources to help manage the day-to-day operations. That’s why many organizations look to join a GPO. A group purchasing organization (GPO) is a company that leverages the purchasing power of its members to negotiate special pricing in contracts with suppliers.
When an organization partners with a GPO, they receive several benefits, such as purchasing support and access to a team of professionals that will help boost their supply chain. Here are five reasons to join a GPO.
1) Save Time
If your organization is short on resources and manpower, you’re not alone. By joining a GPO, you’ll benefit from a team of supply chain experts that helps you to make informed decisions regarding your business and supply chain strategies. One particular task they'll remove from your workload is contract negotiations. It’s common for organizations to manage several contracts at a time, but GPOs take away the hassle by negotiating pricing and terms with suppliers so their members don’t have to. The support of a GPO allows organizations and their staff to focus more on the day-to-day operations and spend less time looking for the best prices on products and services.
2) Access Exclusive Savings
The main reason several organizations join a GPO is to save money on the products and services they use every day. One of the biggest benefits of GPO membership is accessing aggregated national pricing, which allows small organizations to have the same buying power as large corporations. According to the Healthcare Supply Chain Association (HSCA), purchasing organizations provide $55 billion in cost savings to their members annually. These savings can boost any organization’s budget, because the money you save with a GPO can be spent in other key areas of the business.
3) Learn from Insightful Market Resources
Purchasing can be a complicated process, and GPOs often provide their members with several resources to help them stay up to date on the latest market trends. These resources provide their members with insight into market research, innovative technology integration, benchmarking, and more. With the help of these additional resources, you can enhance your supply chain awareness and make sure only the best practices are followed.
4) Improve Supply Chain Sustainability
A group purchasing organization does more than just save their members money; they can also help to optimize their supply chain. As part of managing your supply chain, GPOs take care of supplier negotiations and contract pricing to ensure the entire procurement process runs smoothly. What’s more, in the event of product shortages, group purchasing organizations can often connect you with an alternate supplier to get the products you need and keep your supply chain moving without interruption.
5) Enjoy No-Cost Membership
While some purchasing organizations offer membership for a fee, several GPOs offer membership at no-cost. A free membership for your organization means more money in your pocket to maximize your savings! It benefits both the member and purchasing organization to offer free memberships. Gaining the benefits of a GPO for free draws in more members, and suppliers are often willing to extend contracts and additional service levels to GPOs that give them access to a larger network of members.
At CNECT, we value our members, and we want to see them succeed. We give them access to an abundance of resources, such as newsletters, webinars, and blog posts, that provide key insights and keep them informed on the latest industry news. CNECT’s dedicated team of supply chain experts also helps our members optimize their existing supply strategies and work to negotiate the best prices to maximize member savings. We provide access to more than 3,000 supplier contracts and help you find the right product or service you need among our 2.7 million product portfolio all at no cost to your organization! Join today to see why our members value the CNECT difference.