Group purchasing organizations, otherwise known as GPOs, are a market mainstay in many industries, and in a highly competitive market like grocery they can offer some strategic advantages. If your company has heard of a GPO in the past but never actively pursued such a partnership, here are four reasons why joining a GPO will benefit your business.
* Financial savings. It all starts here, doesn’t it? In an industry with margins as tight as grocery, anything you can do to save money is seen as a major positive. GPOs combine the buying power of like-minded companies together and use the power of aggregation to secure a more profitable deal with suppliers, ensuring each member saves money or ultimately ends up with a better solution than they may have been able to secure on their own.
* Reduced risk. When you enter into a new vendor agreement, there is always a hint of concern as to whether the vendor you have signed on will be able to follow through on the claims they have made. GPOs can help ease this concern by vetting suppliers before they ever present to members. The GPO will also call on the members themselves to learn which vendors have performed admirably for them in the past.
* Expert advice. If you find yourself faced with a new challenge, chances are your GPO or someone else in the member group has seen it before. Joining a GPO provides you access to a healthy knowledge base of industry professionals all across the country, empowering you with new strategies and solutions to challenges you may not have had an answer for on your own.* Access to subject matter experts and the latest on industry trends. You’ve focused your professional career on the grocery industry, and while you know your market well, it’s difficult to keep up with all the changes that go on in the other markets that affect grocery, like human resources, legal or IT. A GPO like Topco Indirect has a team of sourcing experts dedicated to each of these industries, following up on the latest trends and keeping track of any legislative outcomes that may affect your market. This ensures you’ll never be caught by surprise and that your GPO can help you find a solution for whatever new challenge the market throws your way.
To learn more about how a GPO like Topco Indirect can support your business, contact us today.