GPO contracts vs direct purchasing: what small facilities should know

Group purchasing can lower prices, but it is not always the cheapest route for small or specialist buyers.

How GPOs work

Group purchasing organisations negotiate on volume, which helps on commodity items. Smaller facilities often find direct supplier pricing competitive on specialist or low-volume products.

Compare landed cost

Compare landed cost — price, shipping, minimums and payment terms — not unit price alone. Ask for a proforma quotation so purchasing can compare like for like.

Using both

Many facilities use both: GPO for commodities, a direct supplier for specialist items, custom sourcing and fast delivery.