Myths About GPOs
Group purchasing organizations, or GPOs, are not a new idea. In fact, they’ve been around for a while and have subsequently gathered some myths about their purpose and value. UNA has put the myths to the test and is here to bring you the truth!
Myth #1 GPOs are just for healthcare
GPOs may have started by helping the healthcare industry, but they have widely expanded into other industries. Yes, GPOs can help healthcare and hospital professionals save money and standardize processes, minimizing errors for hospitals, so they are highly utilized in that field. What you may not know is that joining a GPO will give you the benefits of lower pricing and streamlining that the healthcare industry has become accustomed to!
Whether you are an association, in the hospitality industry, or are a small business, a GPO can benefit you! Check out all the industries UNA purchasing serves.
Myth #2 GPOs charge for the discounts they offer
Can be true
This is where you need to be careful. Every GPO structures membership differently. To avoid being charged unjustly, here are some things to look for:
- Visibility into the Fees: If this is not disclosed, ask or look elsewhere.
- Off-Invoice Pricing: Look for what products and services are available with contract pricing in addition to the incentives offered. Contract pricing can be more valuable than the incentives.
- Value-Added Services: Some GPOs stop with price savings. Use a GPO that continually offers new programs and services for your company, in addition to cost reduction.
Be on the lookout for GPOs like UNA Purchasing, who are paid a fee by the suppliers themselves and use that fee to finance the services, allowing for free membership.
Myth #3 I don’t need a GPO
Your expertise as a purchasing or procurement professional is in the skill sets you to possess that enable you to bring the best quality product at fulfillment levels that your company requires. Wouldn’t it make sense to maximize your purchasing power with a partner that has billions of dollars of leverage?
Chances are, you have limited resources within your company or department. That is where a GPO can help. Combine your expertise in purchasing with the leverage of a GPO to ensure your organization gets the best quality product, at the best possible price.
With the added partnership and leverage of a GPO, your effectiveness grows. Simple as that!
GPOs can be a tremendous asset to your company! Let us solve the next big problem: finding said GPO. Click here to find out how UNA Purchasing can help save your business money without costing you a dime.