
Increase Buying Power: GPO vs. Buying Group
To reduce costs, gain a competitive edge, and optimize operations, foodservice operators often turn to either a Group Purchasing Organization (GPO) or a Buying Group. These entities share a common goal: helping businesses harness their collective buying power to secure cost savings and a range of other benefits when procuring goods and services. Let’s dive deeper into the specifics of each choice to help you understand which option aligns better with your procurement needs and objectives: A Group Purchasing Organization (GPO) is an entity that negotiates contracts with suppliers on behalf of its member businesses. These contracts typically cover a wide range of products and services, such as medical supplies, office equipment, or industrial materials. A Buying Group, also known as a Purchasing Cooperative or a Cooperative Buying Group, is an organization formed by independent businesses or retailers with similar interests, typically within the same industry or niche, to pool