5 Reasons to join a global purchasing group

By Ken Zwerdling on Oct 08, 2017

 A Global Purchasing Group, also known as a Group Purchasing Organization (GPO), is a group of businesses that negotiate contracts with vendors, leveraging their buying power for better discounts and savings.

Cost Savings

There are several reasons to join a global purchasing group, one of the most important being cost savings. Many suppliers are willing to offer quantity discounts as sales volumes increase. Each business in the purchasing group benefits by paying lower prices on common supplies because the group makes purchases as a larger entity.
 

Better Customer Service

It is common knowledge that customers who buy more typically receive better customer service. By joining a Global Purchasing Group, your business becomes part of a valued customer, and vendors will strive to earn your loyalty. And while those extra services will, of course, vary between suppliers, a purchasing group may enjoy waived delivery fees, economical alternatives for common products, and hassle-free reordering.
 

Streamline Purchasing

Every business aims to become more efficient, and streamlining purchasing is one method of achieving that goal. Joining a Global Purchasing Group frees up the purchasing department from continuously ordering mundane office supplies and allows it to focus instead on more strategic purchasing decisions.
 

Better Procurement Networks

By joining a Group Purchasing Organization, your business will gain access to an established network of reliable suppliers and vendors. This makes it easier for your procurement team to find vendors and manage your supply chain.
 

Data and Analytics

One final reason to join a Global Purchasing Company is your easy access to more purchasing data and better data analytics. As a small business, it can be challenging to gather and analyze purchasing data. When small businesses join together to become a larger entity, this data is made readily available to help you make better purchasing decisions and show you how much time and money you are saving. 

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