Group purchasing organizations (GPOs) are increasingly becoming more prevalent in the challenging procurement environment within the private sector. Traditionally, GPOs Have been associated more with the public sector and specific industry sectors such as healthcare and non-profits where they focus on volume consolidation to increase purchasing power on behalf of members.
Jamie Vogel, VP of Sales and Marketing at Transportation Impact and Marco Pambianco, Regional Director, Central at OMNIA Partners recently discussed in a webinar, various ways in which companies can avoid unnecessary shipping costs this year through education ideas, insights, and data.
The decision to rent equipment versus purchase can be a tough choice for procurement and key stakeholders to make. Equipment tends to be a large expenditure and critical to productivity, making this spend crucial to an optimized spend management strategy. Procurement needs to weigh several factors to decide what makes most sense for their organization.
We have outlined the pros of equipment rental versus equipment purchase.
Managing inventory levels of Maintenance, Repair, and Operating Supplies (MRO) is a major challenge for any business. MRO usually refers to any product or service that is used in a manufacturing facility to support production and keep the business running. It will include industrial supplies, tools, personal protective equipment (PPE) and all types of consumables. It could also include items needed for the physical maintenance of the factory and systems support. Without MRO, the business would grind to a halt.
One definition of a successful purchase is the right product or service, delivered in the right place, at the right time, of the right quality, for the right price. There is scope for failure in each one of these elements. Managing procurement risk means understanding what can go wrong and having plans in place to avoid unwanted outcomes. Many organizations are not fully aware of the many types of procurement risk they are exposed to and are therefore not ready when supply chain disaster strikes.
You did it, 2020 is over. While last year had an abundance of challenges, many organizations saw a silver lining by pivoting to new methods of supporting remote work, streamlining manual processes, and implanting automation in areas of business operations that in the past, would not have been possible.
Anyone who owns a business knows that the winter months can be messy. Cold weather brings an onslaught of salt, snow and dirt into your facility, which can be off-putting to customers while causing the potential for slips, falls and other accidents.
For many businesses heavy equipment is a necessity to increase competitiveness and worker productivity; however, owning and maintaining an inventory of equipment assets can be extremely costly. Additionally, owning equipment can actually eat into worker productivity and result in diminished returns.
How can procurement teams help ease the equipment burden for their business? The answer is actually pretty simple, rent instead of buy. The rental of large physical assets and heavy equipment will optimize budget and operational efficiency.
Today’s economic environment is exerting extra pressure on companies to find new ways to reduce expenditure. Cost-saving is still the #1 goal in procurement.
A Group Purchasing Organization (GPO) is a member-based organization that provides companies with purchasing benefits that they would struggle to achieve on their own. GPOs have traditionally focused on obtaining discounts for their members through their ability to leverage volume purchases. Modern and successful GPOs now provide a wide range of benefits, way beyond savings.