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When to Change Your GPO

Changing GPO

July 08, 2024

Insights from Tracey Ranallo

Transitioning to a new group purchasing organization (GPO) or partnering with one for the first time can be a pivotal decision for your business. Tracey Ranallo, Entegra Vice President of Business Performance and Supply Growth, offers her expertise on identifying when it’s time for a change and the key considerations for selecting the right GPO.

Signs It's Time to Switch Your Current GPO

Determining whether your current GPO is still serving your needs can be challenging. Here are four critical signs indicating it might be time to move on:

  1. Lack of Expected Value: If your current GPO doesn’t understand your needs and priorities, you might not be receiving the value you anticipated. It's crucial that your partner aligns with your business goals.
  2. Inadequate Solutions: A good GPO should provide unique solutions tailored to your business and help solve operational problems. If this isn’t happening, it might be time to look elsewhere.
  3. Transactional Relationship: Your GPO should feel like an extension of your organization, not just a transactional partner. If the relationship feels impersonal, consider a change.
  4. Lack of Innovation and Advice: Your GPO should offer innovative solutions, best practices, and advice on industry trends and challenges. If they aren’t helping you evolve and achieve better results, it’s time to reassess the partnership.

Key Considerations for First-Time GPO Partnerships

When deciding to work with a GPO for the first time, consider these crucial factors:

  1. Business Expansion or Growth: As your business grows, having access to a top GPO like Entegra can be vital. The purchasing power and convenience provided can support your expansion efforts.
  2. Cost Management: During challenging times, such as inflation or industry disruptions, a GPO can help you manage costs and access a variety of products and competitive pricing.
  3. Reducing Vendor Dependence: A GPO can simplify the process of finding suppliers, offering flexibility and more options for sourcing food and related supplies.
  4. Rising Food and Supply Costs: A GPO can secure the best possible prices, often accessing group purchase rates that are unattainable alone.
  5. Limited Procurement Resources: If your procurement department lacks the resources to negotiate competitive pricing or identify suitable suppliers, a GPO can bridge the gap.

To discover how the right GPO can transform your business, explore our guide on 25 ways a GPO can improve your operations.

How Entegra Eases the Transition

Getting started with Entegra is straightforward. Simply sign up online, and a team member will contact you to discuss your needs and goals. Our robust client onboarding process includes initial meetings to establish expectations for the partnership over the first year, ensuring a roadmap for success with mutual accountability.

Want to learn more? Explore getting started with Entegra and contact us today.

July 08, 2024

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