3 GPO myths: Busted!

Every GPO (group purchasing operator) operates differently.

Here, we address 3 myths that may be hindering your ability to launch a winning GPO partnership. If you are a hotel, restaurant, golf resort, senior living operator — or any operator who runs a hospitality-driven business — you can get the GPO basics in our new guide: Why join a GPO?

 

Myth #1

Working with a GPO means eliminating our purchasing department.

• Myth, debunked: The best GPOs work in partnership with in-house purchasing teams and allow them to determine levels of engagement. The GPO relationship is not a takeover — it’s a collaboration.
• Entegra extra: Our deep bench of advisory experts, including Entegra Culinary Consulting, goes beyond procurement to help clients boost their business performance overall.

 

Myth #2

GPOs only provide savings and rebates on food.

• Myth, debunked: Yes, some GPO are limited to specific product categories. But many, including Entegra, are not.
• Entegra extra: Entegra offers one-stop savings on supplies, services, furniture, equipment (FF&E) and more – nearly everything you need to run your operation. And of course, Entegra provides robust food and beverage savings programs.

 

Myth #3

Working with a GPO costs money and there are hidden fees.

• Myth, debunked: Some GPOs do charge membership fees and aren't always fully transparent when it comes to disclosing savings and rebates.
• Entegra extra: With Entegra, there are no membership fees.
  As for transparency, here's one example: Some businesses who work with GPOs find it challenging to correlate the rebate checks they receive with their actual purchases, making it difficult for them to optimize their purchasing behavior.
  ​At Entegra, clients gain access to financial information down to the line item. This type of item-level visibility allows you to accurately track, predict and optimize rebate earnings.

Want to learn more about fact versus fiction when it comes to GPOs?

Download Why join a GPO?, which includes a streamlined GPO checklist that includes eleven must-ask questions when shopping for a purchasing partner.

Get the free guide here: Why join a GPO?