How a Group Purchasing Organization Can Save Your Business Money
GPO’s (Group Purchasing Organizations) have been around for about ten years primarily in the healthcare industry. The basic concept of a GPO is that a group of businesses can come together and buy products cheaper than any single company can. This model may or may not be beneficial for the Coca-Cola’s, Wal-Mart’s, or Johnson & Johnson’s of the world, but they are great for the small to medium size business because they allow the little guys to buy their products on the discount level of one of these huge corporations.
As industries are expanding and products are being developed, we are seeing GPO’s spread into the education, printing, office supplies, and consumer products fields. Manufacturers are willing to cut their margins and deliver products at wholesale prices for the volume of customers the GPO’s offer. In most scenarios GPO’s can save businesses anywhere from 20% - 40% off their already competitive prices.
GPO’s are exclusive to members meaning that your business would pay a membership fee to be a part of the wholesale buying group.
Two things to consider before becoming a member of a GPO.
All in all a GPO is a good way for you to effectively cut cost without having to compromise quality or service.
For more information on GPO’s contact Ken Hamilton @ 615-591-7722 or e-mail firstname.lastname@example.org
Source: Free Articles from ArticlesFactory.com
ABOUT THE AUTHOR
Ken Hamilton is an independent print consultant for One Source, Inc. in Franklin, TN.