"The modern CFO's focus has shifted from simply managing expenses to identifying untapped levers for value creation."
The CFO's Guide to a GPO Partnership
Turning procurement into a profit center.
A practical guide for finance leaders evaluating how group purchasing can improve margins, increase procurement ROI, and unlock measurable value.
INTRODUCTION
The Traditional View of Procurement is Outdated
For many organizations, procurement has long been treated as a cost center — an operational function responsible for managing purchases, controlling spend, and supporting the business.
The best procurement teams do far more: they improve margins, reduce leakage, accelerate sourcing cycles, and build resilience across the organization.
COST CENTER VS. PROFIT CENTER
Reframing Procurement ROI
A profit center mindset shifts the focus from cost control to value creation. Procurement is measured by the economic value it generates through hard-dollar savings, cost avoidance, working capital improvements, and stronger supplier leverage.
OLD THINKING
"How much does procurement cost us?"
Success defined by staying within budget. Procurement judged as overhead. Value is real but not fully measured or unlocked.
PROFIT CENTER THINKING
"How much value does procurement return — and how fast can we scale it?"
Savings represent liberated capital for reinvestment in innovation, R&D, and market expansion. Procurement is an investment, not a drain.
BENCHMARKS
5 Procurement Benchmarks for CFOs
Clear, measurable benchmarks allow CFOs to assess whether procurement is delivering meaningful EBIT impactand where a GPO partnership can accelerate results.
18-22%
Average Category Saving
compared to 3–5% through standard internal negotiations which means the GPO delta is a direct margin opportunity.
20-30%
Operating Efficiency Gains
Leading teams reduce transactional work and minimize value leakage by 3–12%, ensuring savings reach the bottom line.
85%+
Spend Under Management
World-class target vs. the 60–70% typical for most organizations. Greater coverage reduces maverick purchasing.
Days
Procurement Cycle Time
GPO pre-negotiated contracts shrink sourcing timelines from weeks or months to just days.
f
f
5%+
EBITDA Margin Impact
Procurement organizations that combine savings, compliance, and execution drive meaningful margin change..
THE PROCUREMENT PLATEAU
Where Traditional Procurement Stalls
Even capable procurement teams hit a ceiling. This is where finance starts to feel the drag and where a GPO is specifically designed to close the gap.
Limited buying power in indirect and tail spend categories
Too much unmanaged tail spend and maverick purchasing
Fragmented supplier bases across departments or locations
Limited category expertise in non-core spend areas
Shortage of time for strategic sourcing due to transactional workload
70%
of Una members recently surveyed reported feeling pressure to deliver cost savings prior to joining a GPO.
57%
of members cite lack of resources and time along with limited buying power as roadblocks to savings.
43%
of members needed help implementing better spend and category management strategies
HOW A GPO HELPS
Facilitating the Pivot to Profit Center
A GPO changes the economics of procurement by giving your organization access to greater purchasing power, stronger supplier terms, and pre-negotiated contracts. The result is faster time-to-value and lower cost to capture savings.
Immediate Margin Improvement
Access to $100B in collective buying power delivers 18–22% savings in indirect categories without the time and cost of a full sourcing event.
Faster Time-to-Value
Pre-established supplier agreements compress the entire sourcing process. Move from identifying an opportunity to capturing savings in a fraction of the time.
Reclaim Time for Strategic Work
A GPO handles supplier sourcing, vetting, and negotiation freeing internal teams to focus on supplier innovation and cross-functional cost transformation.
Tail Spend Visibility
Consolidate the unmanaged 20% of spend through pre-negotiated contracts. Fewer suppliers, stronger compliance, and clearer visibility into capital flow.
Better Control & Compliance
Centralized contracts and supplier frameworks ensure savings are not just negotiated — they're fully realized with reduced value leakage.
Lower Cost to Capture Value
Ready-to-use savings opportunities with minimal internal lift improve the overall ROI of the procurement function itself.
CASE STUDY
Six-Figure Shipping Savings
A medical equipment and digital healthcare company ships millions of dollars in packages annually. Rising costs and limited procurement resources made it difficult to secure favorable rates quickly.
After an initial discovery call, Una conducted a spend analysis across several providers and connected the company to pre-negotiated contracts backed by established supplier relationships.
$650,000+ saved per year in shipping costs
23% total savings achieved on shipping spend
<1 month time to start saving after contract activation
EVALUATING A GPO PARTNERSHIP
Key Questions for CFOs
Not all GPO partnerships deliver the same level of value. Evaluating the right fit requires understanding how effectively a GPO can integrate with your organization, accelerate results, and support long-term financial goals.
1.
Coverage Across Your Spend
Does the GPO offer strong contract coverage in your most relevant categories, especially high-impact indirect spend areas?
2.
Proven Savings
What level of savings can the GPO demonstrate, and how quickly are those savings realized after contract activation?
3.
Transparency & Visibility
Will you have access to clear spend analytics and reporting? A strong GPO should enhance — not obscure — your visibility.
4.
Flexibility
Are there purchasing minimums or restrictive contracts? The best GPO partnerships offer flexibility without forcing compliance.
5.
Ongoing Support
Does the GPO provide active support beyond contract access, including supplier management, issue resolution, and optimization?
6.
Alignment With Your Strategy
How well does the GPO complement your existing team? A strong partner augments your capabilities — it doesn't compete with them.
GET THE FULL GUIDE
Ready to turn procurement
into a profit center?
Download the complete CFO's Guide to a GPO Partnership, including the full benchmarking framework, evaluation criteria, and case studies, as a PDF to share with your team.