GPO stands for group purchasing organization. At OMNIA Partners, Private Sector, we define a GPO as an organization that uses the purchasing power of a group of businesses (its members) to negotiate better pricing, service levels and account representation from vendors (its suppliers) to simplify the buying process for procurement or purchasing professionals. In return, suppliers gain increased market share and access to decision-makers at customer organizations throughout their industries.
Because they’re negotiating on behalf of a group of businesses, GPOs are able to negotiate deeper discounts and continuously improve terms and conditions with suppliers. This saves all GPO participants money, time and resources.
But a GPO can do more than that—it can also help you reduce supply chain risk. Here’s how.