Group Purchasing Organization Defined
By Billy Williamson
 What are the benefits of group purchasing?
Because GPOs represents many small businesses, they are able to offer economies of scale to the customers that they serve. By aggregating the purchasing power of many small businesses and organizations. Group purchasing organizations help balance the
negotiating equation between purchasers and vendors.
Group Purchasing Organizations produce substantial savings by removing costs from across sales and supply chains, not by simply contracting for the lowest possible cost products. GPO customers receive financial benefits through up-front pricing discounts.
In addition, GPOs provide valuable cost-avoidance savings to small business and organizations by helping them standardize and streamline their purchasing, as well as reduce the number of staff that facilities must employ to negotiate purchasing contracts.
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About the Author
| Billy Williamson, Globalmpg
11730 N. Marianne Cr
Houston, TX 77071
832-767-7745
Contact Author: request info
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