Are you currently looking for a group purchasing organization that you can join? If you do not know where to start, then you have found the right article for you. We will be sharing tips that should help you search for the most reliable GPO for your company and the factors you should consider when choosing one.
Group Purchasing Organization (GPO)
A group purchasing organization or GPO is an entity whose main objective is to find its members the best suppliers of goods and services to provide them with cheaper rates and discounted deals. They do this by leveraging the purchasing power of the businesses which are members of their organization. They will then find suppliers in their network that could offer the best discounts and rebates to help their members save more money on procuring goods and services.
Businesses often join GPOs to reduce the costs of procuring raw materials and other supplies. Healthcare providers are the most common companies that join group purchasing organizations. GPOs also benefit them by ensuring that suppliers are competent and only provide high-quality supplies.
Factors to Consider When Choosing a GPO for Your Company
With thousands of GPOs out there, how can you know which one is the most suitable for your needs? Here are some factors that you should consider when choosing a GPO for your business.
- Supply chain savings
Supply chain savings is the total amount of savings a GPO can produce, which include costs for distribution, shipping, warranties, and maintenance. When looking for a GPO, analyze the savings it can deliver to its members.
- Contract model
The contracting model states the agreement on how the supplies are going to be procured, which may differ from one GPO to another. Ensure that you have consulted the contracting model of your potential GPO before joining if it is unfavorable to you.
- Type of GPO
There are three types of GPO: vertical market, horizontal market, and master buyer. Find out which type works best for you to narrow down your choices of GPO.
- Type of programs offered.
Each GPO may offer different programs depending on the type of industry they cater to. If you are looking for one who can supply you with goods and services for maintenance, find a GPO with an MRO program.
- Suppliers
You should also look into the suppliers that are in the network of your preferred GPO. The most competent GPOs ensure that their members are going to be transacting with reliable suppliers that can deliver quality products.
- GPO’s reputation
Look into the credibility of the GPO by reading reviews and testimonials from its previous and current members. Do a bit of a background check to make sure that they have a good reputation and are proven to deliver to their members.
- Networking potential
GPOs can implement networking programs where their members can benefit from each other. If you want to improve your network, look for a GPO that gives importance to the relationship of its members.
- Accessibility
It will be advantageous if the GPO’s website is user-friendly and accessible even to interested clients. Their website reflects their professionalism and eagerness in serving their members.
- Customer Service
You want a GPO that is hands-on in dealing with its members in case of conflicts and other potential problems. You can assess this through their customer service. They must be able to address and proactively resolve any issue that may arise.
Tips to Find the Best and Most Reliable GPO
The key here is to find first the best group purchasing organization there is. To do this, here are some tips that you can follow in searching for a reliable GPO that can accommodate your needs provide the most benefits.
Conduct the necessary research
As always, you would not want to go into a battlefield unarmed. Do research about GPOs and how they should work. Having enough knowledge will help you in future transactions. Especially for first-time members, having the right idea, even just the basic information, will help you find competent GPOs and avoid getting taken advantage of by frauds.
Consult experts
Do not hesitate to ask for help from people who have enough experience dealing with group purchasing organizations. You can always consult experts or even ask people you know in the industry who are already members. They can give you advice on what you should do and what to avoid when looking for a GPO. This alone should be enough to equip you on what you should expect when dealing with GPOs.
Utilize the internet
The best place now to look for a GPO or procurement company is the internet. Now that every entity or organization seems to have its website, you can easily access information about its services, mission, and vision. Some also provide resources that should guide you about GPOs and how you can join one. Find a GPO online that matches your qualifications.
Communicate with a GPO
From asking people you know and researching online, have a shortlist of GPOs you are interested in joining. Their websites usually contain their contact numbers and other ways you can easily reach them. It is essential to communicate with them first to see how they handle their clients and how their program works.
Ask the right questions.
Contacting the GPOs will also give you an avenue to ask questions and clarifications about their programs. The best GPO will have high-quality customer service to ensure that all interested clients are guided and understand how their organization and programs function. Always know the right questions to ask them, like how big their organization and spending are, the potential benefits a member can receive, the credibility of their suppliers, etc.
Verify their credibility
Before closing any deals or joining a GPO, make sure that you have already counterchecked their credibility. You only want to work with an organization that has a good reputation for delivering satisfactory services. You can read reviews from their current members online to assess their programs.
Now you know all of these, the only thing you need to do is find the right GPO for you. The information we shared above should be enough to guide you in your search. Remember that joining a GPO is like investing in an entity that you know for sure would help you save more money. Ensure that you are putting your money on a reliable team that can help you receive high-quality products and services.
