LSS Life Safety Services®

Benefits Of Using Group Purchasing Organizations (GPOs)

Life Safety Services

Group purchasing organizations (GPOs) have been created to influence the purchasing power of a group of businesses to help reduce costs and obtain the best value from vendors. The first GPO in the United States was founded in 1910 by the Hospital Bureau of New York. And although it was Healthcare focused, since then, the scope of GPOs has expanded to include a broad array of products and services. Today, many other industries, such as, groceries, electronics, industrial manufacturing and agricultural industries are teaming up to create GPOs that bring in these valuable benefits. So how can your business benefit from joining a group purchasing organization?


Save Money and Time

This cost savings happens not only through reduced prices negotiated into the purchasing contracts but also by standardizing the purchasing process. Rather than going through a complex negotiation process with multiple suppliers and trying to keep track of those contracts, a GPO handles this process for you.


Know What Your Savings Will Be Upfront

If you know what you purchased in the past year, the GPO can let you know what your potential cost savings will be. The GPO will take your purchasing report and give you a breakdown of the discounted price and your expected cost savings.


You Control Your Purchasing

You’ll have complete control over what you purchase and when. You can dedicate your time to the more profit-friendly aspects of your business and forget about constantly looking for the best deal on supplies and services.


Get the Attention of Big-name Suppliers

Small and mid-sized companies don’t have the power needed to get aggressive pricing from well-known suppliers. A GPO will help your business get those prices and the capabilities of a market-leading provider.


Group purchasing organization allows employees of a company to focus on its core business and portfolio, instead of the indirect products and services needed to keep the company running smoothly. GPOs help gain quality products and services from vendors, but make sure to do your research to find the best one for your organization.

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