Collective or group buying is a concept that has recently gained a lot of popularity among both individuals and businesses —and for good reason. Most individuals and small or medium companies can’t purchase products and services at the volume necessary to start seeing cost savings. On an individual scale, this is where facilitators like Groupon and LivingSocial come in. But for small businesses? What if these companies could pool their resources in order to get the benefits that buying in bulk from suppliers can provide them? This is collective buying power.
Whether you are a large business or private equity firm, there are ways to streamline and maximize your purchasing operations, which will save you money and make you more efficient. Oftentimes, companies aren’t even aware of the resources available to them that can provide them discounts on products they already purchase regularly. Several industries and types of organizations can specifically benefit from participating in a GPO:
Small and large businesses alike commonly require products and services such as office supplies, small parcel shipping, copying equipment and computers, among other things. These categories are where most GPOs have secured their biggest contracts that can provide the most value. Learn more about GPOs for small businesses.
By leveraging the aggregated spend of the group, GPOs enhance member profitability by negotiating and offering contracts with competitive pricing for indirect supplies and services. This provides needed spend control and supply chain management to drive unique savings for each of the private equity firms’ portfolio companies. Learn more about GPOs for private equity firms.
Associations are uniquely designed to provide incredible educational and networking opportunities for businesses and organizations coming together for a common purpose. But the value doesn’t have to stop there. We have found that a lot of associations want to provide membership discounts with efficient and standardized purchasing options for all their members. GPOs can provide easy and lower-cost access to products and services while helping the association increase its value proposition and membership retention. Learn more about our GPO benefits for associations.
Hospitality groups commonly procure products and services for food purchasing, housekeeping/MRO supplies, office supplies and more. GPOs like UNA have relationships with suppliers in these areas already and can help procure and negotiate up-front savings and help take care of the contract direct and indirect spend management. Learn more about our GPO benefits for hospitality companies.