GPO Strategic Sourcing Services

Group Purchasing Organization Alternative Support Services

Corcentric Management Services provides custom strategic sourcing, procurement, and category management solutions in lieu of, or in addition to, a Group Purchasing Organization.

Group Purchasing Organizations (GPOs) can be integral partners for sourcing and purchasing supplies or services by leveraging buying power to drive down costs from the supply base in exchange for increased volume.  Under a standard Group Buying model, Procurement organizations realize the savings the GPO obtains through their portfolio.  While volume and buying power can produce savings, they do not take into consideration the unique requirements of individual members.

While GPO models offer tangible benefits, companies should also consider GPO alternative Procurement and Strategic Sourcing solutions when determining the best fit spend management program.

Corcentric Management Services is one of the few Procurement Services Providers able to supplement or substitute a Group Buying Organization.  As an alternative cost reduction solution to a GPO, Corcentric acts as a true extension of your Procurement and Strategic Sourcing group to provide flexible Strategic Sourcing, Procurement, and Category Management support across a broad range of direct spend and indirect spend categories.  We extend coverage to many areas Group Buying Organizations lack within their purview, acting as a well-equipped Group Purchasing Organization alternative.

Our team of Procurement and Strategic Sourcing subject matter experts will do the heavy lifting of a Group Purchasing Organization, identifying and securing suppliers unique to your needs, and managing contracting and negotiations while also monitoring for compliance, delivering strategic solutions to mitigate risks.  In the instance your organization is already using a Group Purchasing model, Corcentric can supplement the GPO services to identify spend areas where you should be buying off of your GPO agreements, and can negotiate further pricing concessions.

Determining whether a Group Purchasing Organization is the right fit?  A GPO solution may not solve your spend management challenges if any of the following apply to your organization:

• Procurement is not centralized, you have grown significantly through acquisition, or operate with multiple ERP systems; this results in an inability to access historical purchasing data, a primary requirement of most GPO’s
• The Group Purchasing Organization in consideration does not service your industry
• Your focus is on investing in specific spend categories the GPO may not be most effective in, or may not cover at all within their portfolio
• You do not have a good working relationship with the suppliers within the GPO contract
• After conducting some research, you find you may be able to produce better pricing than the GPO by cutting the profit margin out of the equation since GPO’s are paid by their supply base
• Your spend under management may not be highly commoditized in comparison to other companies
• Savings compliance and tracking is a critical component of your operations

Whether you’re considering using a Group Buying Organization, want to supplement or replace your current GPO, or simply want to explore alternative cost reduction solutions, contact our Strategic Sourcing and Procurement experts today to discuss your category management options.