What is a GPO?
A group purchasing organization, or GPO, provides its members with discounts on the supplies, products, and services they need to run their businesses. By aggregating the purchasing volume of its members, a GPO negotiates contracts with vendors and suppliers for better pricing on the products and services its members use every day.
GPOs are common throughout the healthcare industry, which is where Innovatix got its start. We are now extending the deep discounts and hands-on service model we created for our 32,000+ healthcare members to non-healthcare-related business and industry market leaders.
Watch this brief video to learn more about GPOs and discover how you can leverage Innovatix’s buying power to save 10%–73% on your total annual purchasing spend.
Think of a GPO as similar to a “big box” membership club, but without a membership fee or warehouse facility. In these bulk stores, the more you buy, the more you save. GPOs work in a similar way. Members join Innovatix, choose which of our negotiated contracts they want to access, and place orders from the vendors in our portfolio. These are the same products, services, and vendors that members may already be using, but with discounted prices because of the combined purchasing volume. The result is significant savings for members on the products and services they use every day.
No. Innovatix Business & Industry members do not pay any type of fee. Just by signing up, our members enjoy access to our portfolio of nearly 2,000 negotiated contracts. If you decide to purchase through one of our contracts, we receive a small administrative fee from the vendor based on our clients’ purchasing volume (not exceeding 3% of the total purchasing volume). At the end of each year, Innovatix sends its members an itemized report that details the purchases made from the contract portfolio and discloses any fees earned based on those purchases.
“With our current program, we spend $188,433 annually with (our office supply company). However, through Innovatix we are projected to spend $165,030 this year. By switching to Innovatix, we will save $23,403 or 12.4% this year alone.”
Global, full-service retail branding and sourcing company
“Our projected electric cost savings are $15,289.00 for this year and 75% annual savings in lighting usage compared to our existing lighting solution. This means we have $1,274 additional operating cash flow every month.”
New York City-based chain restaurant
“The over 70% shipping discount offered to non-profit organizations is exceptional. My experience has been nothing but positive.”
New York City-based art gallery
Interested in learning more about GPOs? These papers, articles, and links provide commentary and evidence-based research showing the savings that GPOs can bring to businesses like yours.
- Free Innovatix White Paper! The GPO Model: A Proven Strategy to Help Businesses Achieve Cost and Time Savings
- Spend Matters Perspective: GPOs and Buying Consortiums Must Be on the Radar
- The Five Worst Reasons Not to Join a Purchasing Consortium
- Group Purchasing Organizations — A Low Risk, High Value Proposition (podcast)
- Not Your Grandfather's GPO