Hugo Britt
Written by Hugo Britt

Choosing the right group purchasing organization is a crucial step in forming a holistic procurement strategy.

As a procurement leader, you understand that entering any new business relationship is a significant commitment. Building a true partnership, and one that delivers long-term value, requires thoughtful evaluation, negotiation, and time. You’ve mastered the art of identifying the right suppliers, crafting solid contracts, and leaning on those partners to help drive savings.

But what happens when time isn’t on your side? Maybe you're juggling multiple spend categories, navigating a high volume of RFPs, or leading a lean team with limited resources to devote to contract negotiations and supplier development.

That’s where group purchasing can make a strategic impact. A group purchasing organization (GPO) operates like a buying consortium, uniting the purchasing power of multiple businesses to secure favorable terms and pricing from suppliers.

GPOs take this work off your plate - and scale it. At Una, for example, we harness billions in collective buying power to negotiate competitive contracts with top-tier suppliers, then extend those savings directly to our members.

Just as choosing the right suppliers is crucial to your procurement strategy, so is selecting a GPO that aligns with your goals. It’s a key move in building a more efficient, cost-effective, and agile procurement operation.

Choosing a Group Purchasing Organization

Here’s a clear, actionable GPO Evaluation Framework that procurement professionals can use to determine what questions to ask when considering partnering with a group purchasing organization.

It’s structured around key decision-making categories, each with probing questions designed to evaluate alignment, value, and fit.

1. GPO Model Fit

  • Is the GPO horizontal (broad categories) or vertical (sector-specific)?

  • Which model best aligns with our industry, spend categories, and strategic goals?

2. Product & Service Coverage

  • Has the GPO shared a detailed supplier portfolio or contract list?

  • Do their offerings cover the majority of our indirect procurement needs?

  • Are there gaps that would require frequent off-contract purchases?

3. Savings Potential

  • How do their pre-negotiated rates compare to our existing supplier agreements?

  • What percentage savings can we expect compared to what we could achieve on our own?

  • How does the GPO’s purchasing power compare to competitors?

  • How many active members does the GPO have?

  • What benefits beyond cost savings are offered (e.g., risk reduction, compliance, sustainability)?

4. Membership Structure & Fees

  • Is membership always free, free-to-join with fees, or paid?

  • If free, how does the GPO make money?

  • Is the fee structure transparent and easy to understand?

5. Data & Reporting

  • Can we access real-time or regularly updated reports on spend, savings, and compliance?

  • Are dashboards or reporting tools available, automated and customizable?

6. Contract Flexibility

  • Are there minimum order requirements or volume commitments?

  • Will the GPO restrict our use of preferred suppliers or ability to negotiate custom terms?

  • Can we opt in or out of individual contracts based on our needs?

7. Onboarding Process

  • What is the timeline to value (how soon will we start saving)?

  • Will the GPO conduct a cost analysis to identify opportunities?

  • How complex or time-consuming is the onboarding process?

8. Strategic Alignment & Resources

  • Will the GPO adapt to our existing procurement strategy?

  • Are Sourcing Advisors available with real procurement expertise?

  • Can the GPO help fill gaps in expertise or internal bandwidth?

  • How much effort is required from our team to manage the GPO relationship?

9. Member Support & Engagement

  • Do members get a dedicated account manager?

  • What types of support services are offered (e.g., training, issue resolution)?

  • How does the GPO ensure we’re aware of available benefits?

  • How frequently does the GPO communicate updates and opportunities?

  • What communication channels are used (email, calls, portal, etc.)?

  • Does the GPO conduct member satisfaction surveys? What have results shown?

How to Use This Framework

Use these categories as a checklist during GPO research, sales conversations, or RFP evaluations. Prioritize areas based on your organization’s needs like savings potential, supplier flexibility, or onboarding speed, and use the questions to drive meaningful comparisons between potential GPO partners.

Download a free copy of this framework and contact the Una Team for more information about how to start saving today.