The Modern Group Purchasing Organization: Leveraging Spend, Increasing Value

“In the United States, a group purchasing organization (or GPO) is an entity that is created to leverage the purchasing power of businesses to obtain discounts from vendors based on the collective buying power of the GPO members.

Many GPOs are funded by administrative fees that are paid by the vendors that GPOs oversee. Some GPOs are funded by fees paid by the buying members. Some GPOs are funded by a combination of both of these methods. These fees can be set as a percentage of the purchase or set as an annual flat rate. Some GPOs set mandatory participation levels for their members, while others are completely voluntary. Members participate based on their purchasing needs and their level of confidence in what should be competitive pricing negotiated by their GPOs.”

Group purchasing is used in many industries to purchase raw materials and supplies, but it is common practice in the grocery industry, health care, electronics, industrial manufacturing and agricultural industries.

Source: Wikipedia

The above is the technical or literal description of a buying group. While accurate, and beyond the leveraging of purchasing power, does it really illustrate the true impact of GPOs since they were first introduced in the health care industry in 1910?

Joining me on Wednesday, January 21st at 12:30 PM EST to look beyond the basic, albeit important cost savings of GPOs to examine their greater impact on business and the economy in general is Corporate United’s Vice President and 2009 Supply and Demand Chain Executive “Pro To Know” David Clevenger.

David Clevenger

About David:

As vice president of Corporate United, the nation’s largest group purchasing organization, David Clevenger leads the operations, category management and marketing functions. He is responsible for prioritizing the company’s portfolio of leveraged agreements, as well as developing supplier relationships. Prior to this position, Mr. Clevenger directed Corporate United’s strategic sourcing and supplier management functions.

About Corporate United:

Corporate United is the nation’s leading group purchasing organization, with more than 100 Global 2000 companies across every industry sector collaborating for the purposes of enhancing their spend management efforts, sharing best practices and interacting with an unrivaled network of professionals.

Remember to use the On-Demand Player below to access the live January 13th broadcast of “The Modern Group Purchasing Organization: Leveraging Spend, Increasing Value.”

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2 Responses to “The Modern Group Purchasing Organization: Leveraging Spend, Increasing Value”
  1. ryan says:

    did one the largest GPOs in the US, just quote from Wikipedia? Mr Clevenger, I am sure you can find 10 min to write a proper introduction.


    • Then it is a good thing Ryan that this is just an outline for the show.

      The real meat and potatoes so to speak are in the probing and perhaps even thought-provoking questions we will be asking Mr. Clevenger when the show airs. (Note: Due to a scheduling conflict, this segment of the PI Window on Business will air live on Thursday, January 21st at 12:30 PM EST).

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