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25 ways the right GPO can improve your business

25 ways the right GPO can improve your business

February 28, 2023
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A group purchasing organization (GPO) like Entegra is uniquely positioned to get you the best pricing on the food, products and services in your restaurant, hotel, golf resort, senior living community, school or college.

Saving money on procurement is just the beginning of how you can leverage a group purchasing organization to meet your business goals.

The right GPO can help your business grow, helping you meet your margins and improve performance.

  • Improving procurement efficiency
  • Managing supplier relationships
  • Reducing operational costs
  • Supporting hospitality operations
  • Enhancing business performance
  • Supporting corporate responsibility initiatives

But do you know how to make the best choice for your business?

It’s time to choose a GPO. Here’s what you need to know.

In this handy guide, we’ve compiled the top 25 ways you can assess whether a potential group purchasing organization is the right choice for you. Learn about the considerations for:

  • Purchasing food, office supplies, smallwares, maintenance and repairs (MRO), capital equipment and more
  • Streamlining training and staffing
  • Strengthening your menu with culinary advice and support
  • Saving on energy costs
  • Achieving your corporate social responsibility goals
  • Improving operational efficiency
  • And more...

How a GPO Can Support Business Performance

Group purchasing organizations (GPOs) can be a valuable asset for hospitality organizations looking to optimize purchasing processes, strengthen supplier management, and improve overall business performance. Many hospitality businesses rely on GPO programs to better control costs and streamline operations.

Areas Covered in GPO Initiatives

Several areas across hospitality operations can be supported through group purchasing and procurement initiatives.

  • Food and beverage purchasing – Group purchasing programs designed to support ongoing hospitality procurement needs.
  • Office supplies and smallwares – Purchasing programs for day-to-day operational supply requirements.
  • Maintenance operations – Procurement programs that support maintenance and facility-related purchasing needs.
  • Capital equipment purchasing – Purchasing initiatives that help organizations source and acquire equipment investments.
  • Training and staffing initiatives – Programs that support workforce and operational development needs.
  • Energy programs – Solutions designed to help manage operational energy initiatives and improve efficiency.
  • Corporate responsibility programs – Support for supplier diversity, sustainability, and broader CSR initiatives.

What to Consider When Selecting a GPO

Choosing the right group purchasing organization (GPO) can significantly impact procurement efficiency, supplier relationships, operational support, and overall business performance. Hospitality organizations should evaluate several factors when selecting a GPO partner that aligns with their operational needs and long-term goals.

  • Supplier network and procurement categories – Access to food, products, services, and programs that support operational purchasing requirements.
  • Procurement process support – Coordination with suppliers and assistance with procurement management processes.
  • Hospitality-focused support services – Business solutions and resources tailored to hospitality operations.
  • Cost savings opportunities – Programs designed to help organizations reduce operational and procurement-related expenses.
  • Scalable solutions – Flexible solutions that can support multiple locations and adapt as the business grows.
  • Corporate responsibility initiatives – Programs that support supplier diversity, sustainability, and broader CSR goals.

 

FAQs

How should one go about choosing a GPO?

Businesses typically assess the supplier network, the types of categories covered, flexibility, procurement assistance, and cost savings when choosing a group purchasing organization. Businesses also seek business know-how and specialized solutions, such as those provided by Entegra.

How can a GPO support hospitality business operations?

A GPO can support hospitality operations through procurement assistance, supplier coordination, purchasing programs, and operational support services across multiple business categories.

Why should hospitality businesses consider using a GPO?

Hotels, restaurants, golf resorts, senior living facilities, and schools are among the businesses that often use a GPO to enhance procurement efficiency and manage costs.

Can a GPO help businesses manage procurement costs?

Yes. GPOs help businesses access negotiated purchasing programs and supplier agreements that may improve procurement efficiency and cost management. 

Which purchasing categories does a GPO manage?

These include food products, office supplies, smallwares, maintenance and repair goods, services, utilities, and equipment. A provider such as Entegra also helps businesses handle other operational aspects.

How do GPOs help simplify supplier management?

GPOs can help businesses coordinate purchasing across multiple suppliers, improve procurement visibility, and streamline supplier management processes.