What Are the Worst Reasons Not to Join a GPO?

In 2011, Spend Matters published an article called “The Five Worst Reasons Not to Join a Purchasing Consortium.” The article said, “In spite of proven savings, many companies and their procurement leaders have simply not taken advantage of the purchasing consortium opportunity.” Sadly, that’s as true today as it was in 2011. While more and more businesses (including startups and small to medium-sized business) are discovering the savings opportunities available from joining a GPO like Concerto, there are still plenty of holdouts. The 2011 article cited several reasons people are resistant to joining a GPO, but the majority of the reasons boiled down to one thing: companies think they can manage on their own.

And maybe they can, but unfortunately, small and medium-sized business are at an immediate disadvantage. Because they don’t have the leverage that other larger businesses and industries have, they won’t be able to negotiate the same kind of deals for themselves. That means their operating costs are higher and they aren’t able to compete against the price points of their larger competitors. Joining a GPO, however, allows them to aggregate their purchasing power with other GPO members to negotiate those same deals enjoyed by large corporations.

Joining a GPO isn’t about admitting defeat or saying that you don’t have the ability to find suitable vendors, either. Joining a GPO is about utilizing your internal resources as wisely as possible and freeing up those resources to focus on tasks that help you build your business instead of spending time, energy and money on vetting vendor candidates. In addition, a GPO helps you save money, and as the Spend Matters article points out, “every dollar of cost savings goes directly to the bottom line.”

Five years ago, Spend Matters asked, “If your company’s bottom line is not all it could be, why not take advantage of the power of purchasing consortiums?” That question is just as relevant to today’s businesses. Whether you are a new business or one that’s been around for years and has decided to finally join a GPO, it’s time to discover what Concerto can do for you. You can join our GPO for just $10 and start saving immediately. Start putting those dollars towards your bottom line today.