Consider this. You are a Director of Food and Beverage and need to control costs across multiple units. Or you’re a head of culinary searching for alternative products for menus. Or a Hotel General Manager that needs high-quality, on-brand FF&E.

Where do industry professionals turn for guidance to help their operations meet tight margins? They’re using a Group Purchasing Organization (GPO) to get best-in-class advisory service, business strategy and cost-savings programs to run their operations. From restaurants to lodging, senior living to educators, savvy operators lean into everything a GPO has to offer to boost both savings, performance and profits. (See all the industries Entegra serves here.)

Download: Why join a GPO?

If you’re not currently with a GPO or are looking to switch to a GPO partner that can meet your business needs, here are the critical FAQs that can help you make the right decision for your current and future needs.

What is a Group Purchasing Organization (GPO)?

A Group Purchasing Organization (GPO) is a business that helps companies save money by leveraging its purchasing power. By aggregating the buying volume of multiple clients, GPOs negotiate discounts with suppliers, allowing you to access lower prices on goods and services.

Entegra specializes in working with hospitality-driven businesses — or any company with a food service offering — and driving saving them on nearly all of the items needed to run their businesses. Operating more efficiently is another part of a GPO relationship (think menu profitability, SKU rationalization and much more).

How do GPOs make money?

It depends on the GPO. But look for a partner with minimal fees and no charges to join. Entegra does not charge a membership fee. Our suppliers and distributors pay us in the form of rebates. Entegra’s $42 billion in purchasing power means more sales volume for our suppliers, and greater savings and selection for your business – a true win-win scenario.

What are the benefits of joining a GPO?

In addition to cost savings and access to discounted pricing through significant collective buying power, F&B directors and other procurement professionals should look for a GPO that helps them:

• Operate more efficiently, reducing the time it takes to source, price and get shipments of their preferred products.
• Analyze purchasing data, giving visibility into unit spending and money-saving GPO contract purchasing.
• Access a wide network of suppliers, selecting what you need and benefiting from the GPO’s size and influence to get your product deliveries.

What are some of the signs that it’s time to switch from your current food group purchasing organization?

You may be experiencing growing pains, having issues communicating with your GPO or even feeling like the relationship is solely transactional.

Get more advice about when it’s time to switch GPOs from Tracey Ranallo, Entegra’s Vice President of Supply Growth, Supplier Engagement and Business Performance.

If you are you considering joining — or switching GPOs — an Entegra representative can answer all your questions. Contact us.