Group Procurement Organizations, Distributors Should Work Hand in Hand

That is not the case. In fact, instead of competing, distributors often can benefit from their association with GPOs. This is because the distributor remains a key element in the supply chain: the manufactured products are distributed and sold by the distributor and the distributor receives their typical fees and commissions for providing these services.

A group purchasing organization helps its members realize savings on scores of different products and supplies by aggregating member purchasing power. The GPO negotiates discounts from manufacturers and suppliers, which are then passed on to members.

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