The workload for a procurement professional continues to grow. Maybe while you’re reading this, you’re scrambling to finish multiple projects. While you have a track record of completing those tasks on your own, there is another route you can take to elevate your procurement strategy and productivity. Partnering with a group purchasing organization (GPO), as your advisor, has the potential to take your role as a decision-maker to the next level.
A GPO can step in as your teammate and deliver powerful contracts connecting you to industry-leading suppliers across a variety of verticals. When you’re expected to accomplish more with less, a GPO’s goal is to guide you without getting in your way.
We’ve outlined some of the must-know impacts of leveraging a GPO in your procurement strategy.
GPO: Tremendous Buying Power
As a creative problem solver, you’ve displayed strong business acuity and the ability to optimize spend. Add a GPO to your team, and then you’re also able to leverage its robust buying power to better negotiate contracts.
That’s because a GPO combines the purchasing power of collective businesses to achieve better pricing, service levels, and account representation from suppliers.
OMNIA Partners is constantly adding new members to the partnership, which increases the GPO’s buying power.
“Presumably an independent company is not constantly increasing buying power. They're looking at ways to reduce cost,” says OMNIA Partners, Private Sector Senior Vice President Ara Arslanian. "But a GPO is adding new power and new leverage so your program independently continues to be enhanced and improved.”
GPO: Sourcing Cost Savings
Sourcing consists of many time-consuming steps for the procurement team. Partnering with a GPO can help you bypass some of that analysis.
Savings Scenario 1
You have an employee working 2,000 hours a year, and it takes them approximately 500 hours to do one sourcing event. Depending on the complexity of the category, a sourcing event may take up a quarter or half of that person’s time.
So, where could that time be spent if you implemented a GPO program and doubled your sourcing efforts with a better result?
Savings Scenario 2
When you execute an RFP on your own, 18 months from the RFP date, roughly 60 percent of the value that you identified is eroded.
With a GPO model, savings are delivered through a comprehensive sourcing process with a team of professionals providing great input, using a balanced score card, relying on down selecting suppliers with the help and expertise in our membership.
GPO: Constant Cycle of Improvement
As CPOs and purchasing professionals, you’re driving an inclusive workplace culture of ongoing improvement. Better agility, resilience, and risk management. GPOs help companies like yours adopt and maintain lean operations by investing in the right places.
Members of the OMNIA Partners GPO are viewed as a client of choice for supplier partners. The GPO model with thousands of great companies, allows suppliers access they wouldn’t otherwise have. So, you can expect suppliers to deliver a better program with better contracts. They’re willing to put their neck on the line with our powerful leverage to deliver best-in-class solutions.
GPO: Trusted Partnership
OMNIA Partners finds strategies to enhance agreements to serve our members. The GPO’s supplier partners are industry leaders and recognize the importance of innovation and account management.
You’ve probably noticed the human resources and freight and logistics categories can be challenging to navigate. And maybe you don’t have time to do extra work researching the category. Instead, GPO members can lean on a team of subject matter experts advising procurement and providing a diverse perspective to help your company make better decisions.
IT, facilities, corporate services, manufacturing materials. Those categories and many more are represented by OMNIA Partners subject matter experts. We work to bring procurement and supply chain executives tangible value and evidence that the GPO partnership can energize their category strategy.
Keep a GPO in Your Corner
No cost. No commitments. No minimum spend.
Partnering with a GPO, like OMNIA Partners, expands your procurement team. That means more people working as your advocates.
For more detailed GPO insight, check out the Supply Chain Now podcast below featuring OMNIA Partners, Private Sector Senior Vice President Ara Arslanian.