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7 reasons transparency, flexibility are key to a successful GPO partnership

January 13, 2025

Unexpected fees, pesky minimums and rigid supplier choices are less than ideal. When it comes to your GPO, insist on pricing clarity, a bounty of vetted suppliers and out-of-the-box ideas that drive your bottom line.

How to Optimize Hotel Procurement with GPOs

For hotels of all sizes, from boutique hotels to large chains, transparency and flexibility are key to maximizing procurement with a Group Purchasing Organization (GPO).

Importance of Transparency

Efficiency in procurement and maximizing rebates like Volume Distributor Allowances (VDA) are crucial for profitability. A GPO should offer transparency in areas like overall savings, which locations are earning the most, and which suppliers provide the highest savings. Clear data helps hotels track, predict, and optimize purchasing.

At Entegra, pricing transparency is a priority. We provide detailed financial insights down to the line item, enabling clients to fully understand and optimize their rebate earnings.

Supplier Flexibility

A strong GPO relationship also offers flexibility in supplier choice. Entegra’s Local and Direct Programs go beyond broadline purchases, offering a wide range of services, from labor to furniture, while allowing clients to select the best options for their needs. We also assist in new supplier setup, ensuring convenience and adaptability in meeting your procurement needs.

Flexibility for Revenue Growth

Flexibility isn't just about savings—it's also about increasing revenue. Entegra helps hotels tap into ancillary profit-making opportunities, like ATM placement or EV charging stations. We’re committed to helping clients grow through innovative solutions.

Data and Analytics

Using data-driven insights, Entegra helps clients make informed decisions. With our Entegra PurchasingIQ tool, you can track spending, compare industry benchmarks, and find cost-saving opportunities. For more personal assistance, our national account teams and call center are available to help.

Tapping into Trends

Keeping up with trends, from zero-proof beverages to major events, is essential for staying competitive. Entegra brings innovation to clients, helping them stay ahead of market changes.

For more details on how Entegra can help your hotel optimize procurement, increase savings, and grow revenue, contact us today.

*What is a VDA?
A VDA (Volume Distributor Allowance) is a manufacturer discount based on the purchase of large volumes of merchandise. A VDA is also referred to as “deviated pricing.”

January 13, 2025

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