How Can Foodservice Operators Leverage Group Purchasing Organizations?

What is a GPO and how can it help foodservice operators? Restaurants and eateries of all types rely on purchasing programs to supply their locations with ingredients, beverages, supplies, equipment, and even services. GPOs help restauranteurs save money on purchasing, identify key supplier partners, and drive efficiencies across buying processes.

Save Money Through Group Buying

The key to successful foodservice procurement is finding the products and services your business needs at a price that doesn’t break your budget. Group purchasing organizations, or GPOs, help owners and managers do exactly that.

These organizations combine the purchasing power of multiple operations, leveraging higher spend numbers to secure better pricing on products and services. Programs can cover nearly every part of your operation, from food and beverages to DirectTV subscriptions.

Building Your Supplier Network

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Identifying the right suppliers isn’t always easy, especially if you handle procurement completely in house. You want to find partners who

Offer the right products or services

Work with your preferred distributors

Have pricing that suits your budget

Are reliable through disruptions

Keep you up to date on changes

Identifying which suppliers are the right fit is easier when you’re working with a group purchasing organization, as these groups will pre-screen suppliers in their networks. Plus, they often work with a wide range of suppliers and can connect you with the right partners for your specific needs.

Increase Efficiency Through Partnership

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GPOs don’t just connect operators with supplier programs, they also help to streamline your procurement process. These membership groups can help you reduce SKUs, manage distributor relationships, and update menus.

Group purchasing organizations are made up of supply chain professionals with versatile backgrounds, meaning that they often offer a range of purchasing solutions beyond basic programs. When signing on with a GPO, it’s a good idea to ask about their culinary, technology, and procurement consulting solutions.

Connecting With a Foodservice-Specific GPO

If you’re ready to start working with a group purchasing organization, it’s important to find the right group to partner with. Many foodservice operators choose Foodbuy Foodservice.

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A foodservice industry-specific GPO, Foodbuy Foodservice leverages over $32 billion in buying power to secure optimal food, beverage, supplies, equipment, and services programs. Plus, we offer supply chain management partnerships to operators looking for more consultative options.

Contact the Foodbuy Foodservice team today to learn more about our solutions and services.