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A Group Purchasing Organization (GPO) is an entity that helps businesses save on purchases by aggregating the buying power of its members to negotiate discounts with suppliers. GPOs typically serve small businesses by securing favorable pricing on products and services like food and beverages, office supplies, and even technology!

HOW A GPO WORKS

Aggregated Buying Power: GPOs pool the purchasing power of multiple businesses to negotiate better prices with vendors. This increases leverage, allowing members to access discounts they wouldn’t get individually.

Contracts and Agreements: The GPO negotiates contracts with suppliers on behalf of its members, setting terms like pricing, volume, and payment terms.

Access to Suppliers: Members gain access to a network of pre-vetted suppliers, which simplifies procurement and ensures consistent quality.

ChowNow has partnered with Dining Alliance to offer you a free account so you can start getting discounts and cashback on over 175k restaurant food, supplies, and back-office solutions.

BENEFITS OF USING A GPO

Cost Savings: Achieve lower prices on goods and services compared to negotiating individually.

Time Efficiency: Streamlines the procurement process by using pre-negotiated contracts.

Access to Expertise: GPOs often have deep industry knowledge, which helps identify the best suppliers and deals.

Risk Reduction: GPOs vet suppliers to ensure they meet certain standards, reducing the risk of unreliable vendors.

HOW TO USE A GPO

  1. Find the Right GPO: Choose one that specializes in your industry or offers the products and services you need. Research their reputation, fee structure, and supplier network.
  2. Enroll in Membership: Sign up and become a member. Some GPOs may require specific criteria to be met.
  3. Review Contracts: Check the pre-negotiated contracts to see if they meet your requirements, such as pricing, minimum order quantities, and delivery terms.
  4. Start Purchasing: Order products and services through the GPO’s platform or directly from the suppliers. The GPO’s negotiated terms will automatically apply.
  5. Monitor Performance: Regularly assess the savings and quality of service to ensure the GPO is meeting your expectations.

Using a GPO can be especially beneficial for restaurants that want to access competitive pricing without having the seemingly unlimited resources of a large chain. We have partnered with Dining Alliance to offer you free access to discounts, rebates, and cashback programs on items you are already buying. Sign up for free today.