Rising costs, complex contracts and volatile supply chains are an everyday reality for business owners. Despite these challenges, growing your margins is core to the success of your business whether you operate a global enterprise or you’re growing a local business. A GPO, or group purchasing organization, can help you overcome these significant obstacles by getting you access to better prices, contracts and supply reliability. But many operators are not familiar with what a GPO is — if you’re interested in learning more about how one works and how it can help your business grow, read on. 

How do group purchasing organizations work? 

A group purchasing organization (GPO) leverages the combined buying power of its clients, creating a much larger procurement entity. With this aggregated purchasing volume, a GPO negotiates with suppliers on your behalf. This means you secure more favorable pricing, deeper discounts, better contract terms and more reliable supply agreements than would typically be accessible to an individual business. 

Read more: Frequently asked questions about GPOs 

Myth vs. fact: 8 common GPO myths debunked 

What is a GPO partner, and what does it really do for your business performance? Whether you’re new to the world of group purchasing organizations or simply want to get the facts straight, examining common myths can help you understand if partnering with a GPO is right for you. 

MYTH #1: GPOs are just glorified intermediaries. 

FACT: Not all GPOs are the same. 

While some GPOs simply serve as intermediaries, others improve your business performance in addition to offering purchasing solutions that improve your margins. For example, some GPOs deliver advisory support, procurement tech solutions and corporate social responsibility (CSR) guidance. 

On top of your access to the largest and most resilient supply chain in the world, Entegra clients can save up to 30%* on products, services and solutions ranging from food to furniture, from culinary consulting to a full ecosystem of procurement technology.

*Savings based when compared to supplier list prices. 

MYTH #2: My business is too small for a GPO. 

FACT: Some GPOs work with businesses of all sizes, including Entegra. 

From single locations to international brands to everything in between, the right GPO partner can open up your access to major buying power. Entegra supports operators of every size in every industry, so whether you operate a restaurant, hotel, senior living community, or more, you’ll gain access to deeply discounted prices on the products and services you need most. 

Myth #3: A GPO will take over my purchasing department.

FACT: Some GPOs may overreach, while others augment your purchasing team. 

As a consultative partner, Entegra’s goal is to free up your team’s time to focus on higher-priority issues. This means you are always in control of your level of engagement. Most clients prefer a highly engaged relationship with Entegra, as they see it delivers the maximum value to their business. 

“It was like drinking from a fire hose because Entegra brings so much to the table,” said Tom Schmidt, Entegra client and co-owner and founder of St. Louis restaurant chain, Salt + Smoke. “From broadline to local and direct, Entegra does a great analysis to help you start with the most impactful items to improve your buying power, cost and profitability.” 

While other GPOs may consider clients to be competition, the success of your business comes first and foremost to Entegra. Our expert team takes an advisory approach to supporting your existing teams and processes, helping you achieve your business goals. 

MYTH #4: GPOs make you buy specific brands. 

FACT: Some GPOs do; Entegra helps you reduce costs on the brands you actually want. 

Through a growing network of 2,700+ supplier partners, you can instantly access the brands you trust with Entegra. Flexible custom contracting also makes it easy to secure cost savings on brands that aren’t yet part of Entegra’s network. This type of GPO can help you save on the products you need to create return-worthy customer experiences. 

MYTH #5: It’s costly and labor-intensive to work with a GPO. 

FACT: Having a good GPO partner means lower costs and less stress. 

With the right GPO, your team saves time and money while the GPO does the legwork. Your GPO partner lays the groundwork for greater savings, more efficient operations and smarter solutions every step of the way. The ultimate goal is to strengthen your business’s performance. 

To get started with Entegra, there are no GPO-level requirements, including no membership fee. Instead, you can immediately dive into a straightforward ordering process. 

1. Select the products you need
2. Order through your favorite online distributor
3. Make your purchase at Entegra's negotiated contract price 

If you can't find what you need, our team of procurement experts can help you negotiate a custom contract that’s the right fit for you. 

MYTH #6: I can only get one type of product, like food, with a GPO. 

FACT: Some GPOs limit contracts to specific categories; others offer every type of product. 

To simplify purchasing for nearly everything you buy, it’s important to have a GPO with a broad range of purchasing solutions. That’s why food and beverage is just the beginning with Entegra. As your GPO partner, Entegra opens up your access to cost savings on supplies, services, furniture, equipment and more to fit your operational needs. 

MYTH #7: GPOs just provide purchasing support. 

FACT: Many GPOs are limited, but Entegra is not your average GPO. 

Beyond purchasing support, Entegra clients benefit from a wide range of efficiency-enhancing solutions, including advisory services, digital tools, sustainability resources and more. 

MYTH #8: It’s hard to get started with a GPO. 

FACT: Onboarding with some GPOs can be a headache — partnering with Entegra is easy. 

It takes just three simple steps to get started: 

1. Sign up
2. Order what you need
3. Start saving 

Once you’re onboarded, you can save with every order, as well as track your savings and uncover more opportunities with our digital tools. 

Read more: Getting started with Entegra