WHAT IS A GPO?
GPO stands for Group Purchasing Organization
A GPO is an entity that uses the leverage obtained from aggregating purchasing volume of its members to negotiate discounts with manufacturers, distributors, and vendors. In doing this they obtain savings and efficiencies that the member companies could not obtain on their own. In addition, the member companies can redirect their human resources to other more valuable projects rather than supplier due diligence and contract negotiation.
GPOs were originally formed to help the healthcare industry and today that is still the primary operating field of the major GPO’s in the country. There are a few outside the healthcare industry including a couple for very large businesses, manufacturing, and food.
GPOs serve as a vital resource to many companies today as an important vehicle in their supply chain. Purchasing executives are continuously searching for the best price and service level combinations, this includes research, due diligence, and vetting. GPOs do a lot of this work for them and aggregate it in one place to assist busy purchasing departments allowing them to redeploy their resources in other more valuable ways.
The one problem with GPOs, up until now, is that they were not available to everyone. Concerto changes that dynamic by building a GPO designed for the “other guy” in mind. We will continue to build Concerto to bring our members more opportunities to save in more categories from the very best of vendors.