Spend Matters Almanac: Group Purchasing Organization

Group Purchasing Organizations (GPOs), also known as buying consortiums and purchasing coalitions, are entities that attempt to leverage the purchasing power of their participating member/customers, who may also be the GPO’s owners. Many GPOs have traditionally operated as non-profits, but a growing number are for-profit entities; some are even publicly traded. Although a GPO’s primary purpose is to drive member utilization of its prenegotiated contracts for products and services –usually nicely qualified, discounted arrangements reflective of the group’s common and sometimes aggregated purchasing volumes– modern GPOs are also adding a variety of value-adding procurement and supply chain management services as well. These services range from spend category-based market intelligence services (e.g. GPO demand market(s) visibility makes it a natural for providing benchmarking services) to software automation tools designed to streamline P2P processes. More often than not, the GPO’s business model relies on supplier paid fees, but other hybrid models have emerged that include subscription service dues and other usage-based fees. Sometimes, the GPO will even share-back some of its collected fees to highly compliant members.

Insight Sourcing Group
5555 Triangle Parkway, Suite 300 | Atlanta, GA | 30092 United States
Provides solutions and/or services in the following categories:
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Insight Sourcing Group helps clients improve earnings by reducing procurement-related costs. Working with senior executives, purchasing teams, and other stakeholders, ISG drives savings by providing strategic sourcing expertise, implementing procurement best practices, increasing spend visibility, and developing indirect spend consortia. Founded in 2002, ISG is the leading procurement and sourcing strategy firm in North America. The company's leadership includes Fortune

OMNIA Partners
840 Crescent Centre Dr., Suite 600 | Franklin, TN | 37067 United States
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Shaping the future of procurement through power, access and trust. OMNIA Partners is the largest and most experienced purchasing organization for public and private sector procurement. Our immense purchasing power and industry-leading suppliers have produced an extensive portfolio of procurement solutions and partnerships, making OMNIA Partners the most valued and trusted resource for organizations nationwide. www.omniapartners.com

Perfect Commerce
One BayPort Way, Suite 120 | Newport News, Virginia | 23606 United States
(877) 871-3788
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Perfect Commerce develops cloud-based procurement and sell-side ecommerce software for the public and private market sectors. With broad global reach and deep international capabilities, Perfect Commerce is used daily by more than 2 million users across over 70 countries, 12 languages and 60 currencies. We also own and operate a leading independent supplier network with hundreds of thousands of suppliers.

199 W. Hillcrest Drive, Suite 100 | Thousand Oaks, California | 91360 United States
(800) 666-8138
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SpendWorx LLC is a provider of spend analytics solutions and procurement consulting services. The company’s flagship product SpendWorx is a self-service web hosted solution that delivers powerful capabilities in spend visibility, category analysis, contract reporting, vendor performance management, price benchmarking, supply market intelligence and more. Accessible using any PC or mobile device web browser, SpendWorx is available in customized tiers