Group purchasing organizations (GPOs) have been created to influence the purchasing power of a group of businesses to help reduce costs and obtain the best value from vendors. The first GPO in the United States was established in 1910 by the Hospital Bureau of New York. However, since they have been helping hospitals purchase the supplies and services they need for many year may cause people to think GPOs are only associated with the healthcare industry. But GPOs have been expanding their services to other industries, including industrial manufacturing. So how does your business benefit from joining a group purchasing organization?
4 Benefits Of Joining a Group Purchasing Organization
- Save Money and Time
This cost savings happens not only through reduced prices negotiated into the purchasing contracts but also by standardizing the purchasing process. Rather than going through a complex negotiation process with multiple suppliers and trying to keep track of those contracts, a GPO handles this process for you.
- Know What Your Savings Will Be Upfront
If you know what you purchased in the past year, the GPO can let you know what your potential cost savings will be. The GPO will take your purchasing report and give you a breakdown of the discounted price and your expected cost savings.
- You Control Your Purchasing
You’ll have complete control over what you purchase and when. You can dedicate your time to the more profit-friendly aspects of your business and forget about constantly looking for the best deal on supplies and services.
- Get the Attention of Big-name Suppliers
Small and mid-sized companies don’t have the power needed to get aggressive pricing from well-known suppliers. A GPO will help your business get those prices and the capabilities of a market-leading provider.
Group purchasing organization allows employees of a company to focus on its core business and portfolio, instead of the indirect products and services needed to keep the company running smoothly. GPOs help gain quality products and services from vendors, but make sure to do your research to find the best one for your organization.
Hughes Environmental is a member of multiple GPO’s, Contact Us Here or call: 888.845.3952 for more information about how joining a GPO and working with Hughes can provide more cost savings to your business!