Purchasing professionals are constantly being tasked to do more with less. There is an ever-growing savings goal and an unmanageable number of suppliers/categories to be responsible for, in addition to improving long-standing contract savings and service-levels, benchmarking results on current contracts, and satisfying end-user stakeholders’ priorities. Group purchasing organizations (GPOs) can narrow the scope of priorities for procurement as they take on and deliver on the most important value drivers.
Ara Arslanian, Senior Vice President OMNIA Partners, Private Sector, was featured on Supply Chain Now's podcast in which he discussed how procurement can:
- Reduce purchasing costs
- Increase spend influence
- Streamline their buying process
- Leverage the GPO Model for longevity
HOW GPOS ADD ADAPTABILITY & COST-SAVINGS INTO YOUR SUPPLY CHAIN |
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“You really have to emphasize the non-pricing factors in your programs. It is not about grinding down your supplier to the lowest pricing denominator, it is about service-levels, innovation and TCO." Ara Arslanian @OMNIAPrivate |
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What is a Group Purchasing Organization (GPO)?
A GPO combines the purchasing power of a collective of businesses to leverage better pricing, service levels and account representation from suppliers to simplify the buying process for purchasing professionals.The GPO model is quickly gaining adoption. By partnering with and leveraging a buying group, businesses of all sizes can gain more spend under management and transform their supply chain.
In our GPO Resource Hub you can find everything you need to know about buying groups, or watch our video here featuring leaders from OMNIA Partners for answers to all your buying group questions!
