Purchasing Organizations
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The purchasing department of your company may be cutting as many costs as possible, but if you are still in the red–or barely in the black–you need to find ways to become even more cost-efficient. One of the best ways to save money on your purchasing is to work with group purchasing organizations (GPOs). A group purchasing organization works like an in-house purchasing department except it has more buying power. Because larger orders are made and sales can be guaranteed, manufacturers are willing to give GPOs discounts and favorable terms on purchases.
By joining a GPO, your small company will be able to purchase at big company pricing. GPO membership can provide tremendous cost savings, as suppliers are typically favorable towards offering volume discounts. Your small company cannot get volume discounts on its own. What's more, the GPO will negotiate better deals for all of the members. So, you will be able to get fantastic pricing on the products you need without having to spend the time haggling with vendors and suppliers.
GPO membership is not usually free–you may be required to pay a membership fee. In some cases, though, administrative fees are instead paid by the vendors. Or, the GPO may offer free membership to entice businesses to join the organization. Some GPOs have voluntary participation; others are contractual, requiring business members to purchase solely through GPO contracts.
If you are interested in learning more about group purchasing organizations, visit Business.com. The links on the left will provide you with a wealth of information about GPO membership.
Purchasing Organizations
Purchasing organizations offer an array of resources for the busy business professionalBy Kelly Shetsky, Anchor/Reporter Group purchasing organizations are a collaboration of passionate professionals who want to share their experiences and knowledge. They are a source of support, networking and solutions in the retail industry. Members can work in any part of the industry, from production and inventory managers to the chief operating officer.
Group purchasing organizations link you to workshops and seminars which study emerging trends and challenges in the industry. You exchange ideas about processes, systems, methods and implementation of merchandise planning and allocation. As a result, your job performance and professional development are fine tuned. Consider:
1. Use purchasing organizations to grow as a professional in the industry.
2. Consider different group purchasing membership levels.
3. Benefit from purchasing associations by taking advantage of educational and networking opportunities.
Join purchasing associations to grow as a professional
Purchasing councils range from international groups to statewide or local organizations. They are a group of professionals just like you, with one goal in mind: to advance the purchasing industry.
Try: The Health Industry Group Purchasing Association (HIGPA) is a trade group comprised of 21 group purchasing organizations, including multi-hospital systems, associations, non-profits and for-profit corporations and healthcare provider alliances. HIGPA educates on ways to improve efficiencies in the buying, selling and use of goods and services, advocates for health care group purchasing associations and promotes discussion among GPOs. Use the HIGPA website to become a member or sign up for upcoming events. Institute for Supply Management’s (ISM) goal is to be the leader of supply management. Compare your salary to other supply management professionals on the ISM website.
Pay annual dues to belong to purchasing councils
Purchasing groups' dues usually range depending on the membership level. Once you find an association you want to join, decide what type of commitment your company is willing to give.
Try: American Purchasing Society brings more than 2,000 professionals together at the only international conference solely devoted to purchasing and supply management. Sign up for an individual membership to access American Purchasing Society's wealth of resources in the "Members Only" section. You can also post resumes in the "Career Center" section. Company membership comes with three memberships for employees and allows you to post job openings. The Association for Merchandise Planning and Allocation (AMPA) is an international organization that promotes communication and interaction among retail practitioners. AMPA requires members to be a merchandise planning retail professional, complete a survey, have access to the Internet and attend AMPA meetings. Complete the surveys and sign up for membership online.
Benefit individually and professionally from joining a purchasing association
When you join purchasing groups, you get access to magazines, business reports, a career center, groups and forums. Statistics show that professionals who belong to an association make more money than non-members, because of their access to resources and career development tools. Not only do you make bigger profits, but you develop more self confidence.
Try: Association for Operations Management (APICS) is a purchasing organization with more than 43,000 professionals from thousands of international companies. As soon as you sign up to be an APICS member, watch your email for the e-newsletter, chock full of industry news and information. You also save on business and management training seminars and conferences. Supply Chain Council (SCC) offer its members SCOR training and access to publications. It’s a non-profit consortium with benchmarking and evaluation tools to help companies make fast and dramatic improvements.
- Consider a company membership instead of individual membership to a purchasing association, so that your employees can benefit as well.
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