How Active GPO Can Benefit Your Business

You may be familiar with the idea of group purchasing but did not take action because you may not completely understand what it is. Let’s start with the basics: a group purchasing organization (GPO) acts as an integral piece to any supply strategy by helping to create efficiencies and improve procurement processes. In simple terms, a GPO is an entity that leverages the purchasing power of its members or customers to negotiate special pricing with suppliers.

No matter the industry, GPOs are designed to accumulate purchasing volume and use it as leverage to negotiate discounts with vendors, distributors, and manufacturers. Want to know more? You’re in luck. This is your complete guide to group purchasing. Below, we’ll unpack the types of GPOs, benefits, and value-add drivers this service provides.

When it comes to buying power, it’s all about leverage. As a third party between buyers and suppliers, GPOs accumulate and harness extensive buying power. Group purchasing utilizes umbrella agreements to meet the common needs of buyers. Doing so achieves superior prices, services, and account representation for the customers.

Essentially, the more companies that participate in GPOs, the more leverage the GPO can apply in the market. This leads to two things: greater ongoing membership value and access to programs greater than one company can create on their own.

• Fortune 500 buying power and spend controls with leading supplier partners
• Plug and play category solutions across commonly purchased items
• Pricing oversight with continuous leverage and sustainable savings
• Category experts to call on as needed

It’s important to note that GPOs are not all created equally. Some prioritize value delivery through total cost reduction and active category management (Active GPO®), while others provide competitive purchase prices with no focus on continuous improvement (passive GPO).

Make sure you seek out the right GPO for your market, interests, and goals.

Traditional and many current GPOs are still passive models. Meaning companies have to figure out the best ways to get value from the GPO contracts. They don’t receive any support for their in-plant services or procurement teams.

On the other hand, Active GPO® provides tremendous value to mid-size and smaller companies. We drive out costs, create applicable reporting metrics, and provide the right service models and supplier resources.

Your journey of indirect spend is ongoing—which is why your business needs constant engagement and reporting. Rather than the passive GPO’s self-serve model, Supply Tigers Active GPO® works alongside your team to continuously drive out cost and inefficiencies. The chart below demonstrates the extra value of our Active GPO® solution.

In addition to managing the strategic sourcing, supplier relations, and vendor contracts, Active GPO® enhances enterprise value with inclusive benefits that most mid-size or smaller companies can’t get on their own.

We start with a brief, but thorough, assessment of your spend (usually your A/P supplier file). This is followed by examining the current needs of your company. Once you’re a member of our Active GPO® program, we implement applicable solutions and plug in the contracts you’ve chosen to use.

Our team will train your team on procurement. We’ll ensure your personnel knows how to:

• Purchase the correct products at the right price
• Incorporate the right supplier programs (like VMI or vending)
• Understand our robust performance reporting

Active GPO® is the shortcut to savings. Minimizes your internal staff workload with a solution that expands as your company grows. Bypass resource constraints and insufficient buying power. Access proven procurement automation and solutions to simplify how you buy. We put the Active in Active GPO.

When matched with our marketplace solution, this delivers a powerful one-two punch that provides the leverage you need to drive out cost, and the ordering and payment efficiencies to streamline your processes.

Buy Products Better With Active GPO®

Supply Tigers Active GPO® maximizes savings on all indirect spend. We partner with premium suppliers, providing businesses with unbeatable savings on essential products and services.

Future-proof your business with real-time tracking, Fortune 500 purchasing power, and expert advisory that identifies, implements, and maximizes every dollar your business spends. Utilize a procurement strategy tailored to meet and exceed your business goals.

Active GPO® gives you the purchasing power and efficient collaboration that lowers cost, increases financial control, and saves time. Buy better, buy smarter with Active GPO®