Category management is vital in strengthening your strategic procurement process. Originally designed as a project-based approach to managing the sourcing of goods and services, category management has grown to include: spend management and analysis, market intelligence, corporate reporting and governance. It is supported by the right people, tools and technology. Category management is the basis for delivering procurement value to organizations, beyond just negotiating better prices.
Today’s economic environment is always evolving, and you may be taking a closer look at how well you’ve been able to pivot to remain stable and successful in your industry. On top of adjusting to changes, there is extra pressure on finding new ways to reduce expenditure.
Not only can a group purchasing organization (GPO) help you with your #1 goal of cost-saving, but a GPO can also provide companies with purchasing benefits that would be challenging to receive on their own.
Modern and successful GPOs provide a wide range of benefits beyond savings.
Dan Grant, Senior Vice President Vertical Markets, and Lisa Wittmer, Vice President, Partner Development Technology Solutions, were featured by Supply Chain Now in a discussion on the difference between a traditional -vs- modern GPO, the depth of category expertise GPOs leverage for members, how GPOs are helping supply chain leaders future-proof their business, their 2021 supply chain predictions and MUCH more. Watch the video below!
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.
Group purchasing organizations (GPOs) primarily exist for one simple, yet compelling reason: to help businesses interested in buying similar products gain leverage through combined purchasing power.
A study by The Hackett Group defines a group purchasing organization as “an entity that is created to leverage the purchasing power of a group of businesses in order to obtain discounts from suppliers based on the collective buying power of its members.”