It’s November. The leaves are changing, it’s football season again, colder weather has set in; there are so many reasons why this is the season that stirs up Thanksgiving. For your company, it’s no different. The year is winding down, and it’s time to reflect on victories and losses of the past 365 days. No matter how big or small your company is, we have five reasons to be thankful that group buying is an option for your business and why you should partner with us if you haven’t already!
1. Increased Committed Volume = Increased Savings Potential
When you pool your purchasing power with other businesses or organizations, you receive the benefit of upfront savings from higher volume and negotiated discounts. A large, well-established group purchasing organization will be able to facilitate substantial contracts with commonly used vendors. With UNA, you not only benefit from contracts that provide you cost savings, but you are free to utilize only the contracts that benefit your company and have no minimum spend requirements.
2. Supply Chain Management and Ongoing Support
Much of small businesses’ resources can be eaten up by trying to manage the purchasing process and close deals with suppliers. Group purchasing organizations (GPOs) can provide valuable cost-avoidance savings to organizations by helping them standardize and streamline their purchasing and manage all the aspects of purchasing from start to completion, cutting down on the amount of internal resources required to handle buying in small businesses.
3. Access to a Strategic Procurement Partner
GPOs work as an extension of your internal procurement department as an additional resource for efficient sourcing, supplier, and contract management. ‘Purchasing’ and ‘procurement’ are often used interchangeably —and most people understand the intended meaning. However, they are separate elements of securing the goods and services your company uses. Partnering with a GPO can gain you a procurement expert as a partner, dedicated to ensuring you are getting the best deals on the goods you need.
4. Streamline Contract Negotiation
Sometimes businesses’ purchasing needs require plans that go beyond your company’s resources and bandwidth. Joining a GPO allows their supplier partners to customize programs to meet your business’s unique purchasing needs. Since UNA can leverage the buying power of all of our members, vendors see value in partnering with us to offer our members a lower price, freeing you up to focus on your business while we handle contracting that are in your best interest.
5. It is free!
You read that correctly; it costs you nothing! Unlike other group purchasing organizations, UNA does not charge a membership fee. UNA relies on fees paid by suppliers to finance the services we provide to our members. These contract administrative costs are based upon the purchase price that the member pays for a product purchased through a GPO contract. Again, there is no cost to join UNA and membership participation is entirely voluntary.
If those are not reasons to be thankful, we don’t know what are! But don’t worry if you didn’t take advantage of all that group buying has to offer your company this year. You can read more about how a partnership with a GPO can benefit your business and join today! As always, our team is thankful to get to work with so many amazing companies every year and would love the chance to partner with you for your group purchasing needs.