Leverage combined economy of scale through a Group Procurement Organisation

You’ve heard the term, ‘there’s power in numbers’ and that is exactly how a Group Purchasing Organisation (GPO) works. A GPO aggregates the spend of all its member companies and leverages the combined buying power to deliver lower pricing, improved terms and better supplier performance where you have smaller volumes or little negotiating power.

Aggregating the spend of many organisations motivates suppliers to provide the members with ‘bulk pricing’. As the GPO increases its members, the more competitive the prices will become.

Becoming a member of a GPO is not just a ‘quick fix’, it effectively acts as an extension of your purchasing department, improving operational efficiencies by removing the need for internal administration and supplier contract management and will continually monitor your suppliers to ensure your savings are maintained.

scalesA group purchasing organisation typically targets a company’s indirect spend, mainly categories such as; office supplies, IT equipment, print, telecoms etc., primarily low-volume categories often with one-off or infrequent orders that go out to a wide range of suppliers. Due to the low volume of purchasing, companies can end up paying more for these everyday business overheads.

Joining a Group Purchasing Organisation pools your spend with other organisations and enables you to increase your buying power.

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ProSource is a portfolio of group purchasing frameworks. Members have immediate access to lower prices from our pre-sourced, pre-selected suppliers, so they can start saving from day one.

  • Immediate cost savings on business overheads.
  • Increase profit without increasing sales.
  • Access to ‘bulk pricing’.
  • Operational efficiency – remove the need for internal procurement administration and supplier contract management

01 Identify. Join as a Member and select the frameworks that will deliver benefits to your business

02 Deliver. Start buying from better suppliers at lower prices

03 Maintain. We monitor the market to constantly drive improved service and pricing

Contact Us

We build long-term partnerships with our clients that deliver ongoing cost reduction and continuous improvement in procurement. If you would like to know how that works for your business, then please get in touch: