Guide to Group Buying for Small Businesses

Small businesses are the backbone of our economy.  They’re the noble “little guys”, greasing the wheels of commerce with their entrepreneurial vigor.

But when it comes to procurement, small businesses don’t have the same advantages as larger organizations.  Capital to procure strategically is limited in these entities, where cash flow can often drive procurement decisions.

But there’s a way for small businesses to obtain the clout of much larger organizations – with a GPO (Group Purchasing Organization).

The GPO opens the door to obtaining the leverage of the large-scale funding needed to obtain deep discounts that keeps costs low, contributing to the overall health of the organization.

They say it takes money to make money and GPOs kind of prove that.

Numerous advantages.

GPOs do so much more than reduce costs for small businesses.  They source and vet vendors and manage contracts with them.  They do this by pooling the resources of members to create leverage that gets small businesses in the door and taking advantage of the power found in numbers.

That power is collective purchasing, matched by freeing the time your people spend on the nuts and bolts of procurement.  With data analytics to ensure the integrity of supply chains and to measure results, your team is freed to pursue other organizational priorities with the power of a GPO.

Your small business has access to a much broader supplier pool, with the further advantage of communications which are managed by the GPO and thus, greatly simplified.

What you need – every day.

Economies of scale prevent small businesses from getting the maximum bang for their buck.  They can’t buy in large lots, so they wind up paying more for their every day needs.  Office supplies, janitorial supplies, cell phones and other daily purchasing requirements can be had at a much better price point when small businesses call on the power of community, embodied by the GPO.

By building partnerships with major suppliers, GPOs extend the cost reduction benefits enjoyed by larger companies to small businesses.  By procuring goods and services collectively, GPOs level the playing field, helping small businesses toe the bottom line by keeping everyday expenses in check.

When choosing a GPO, make sure you read the fine print.  Know what the organization’s dispute resolution process is, in the event of supplier missteps.  Know who the vendors in the GPO’s supply chain are and that you’re comfortable with them.  Make sure that the value derived from joining a GPO exceeds the cost of membership, or other attendant fees.

Eyes wide open – savings ahead!

CenterPoint Group – trusted for 10 years.

As a trusted procurement advisor in the GPO market for 10 years, CenterPoint’s mission is rooted in integrity, value and leadership.  We leverage a pool of member resources to create an average 96% savings ratio for small businesses like yours.

At CenterPoint, we know there’s strength in numbers, especially for small businesses.  If you’re ready to experience the power of collective procurement, contact us.  We’ll show you how you can save immediately, with a free analysis.

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source https://centerpointgroup.com/guide-group-buying-small-businesses/