A category-by-category breakdown for indirect spend to determine where GPOs deliver the most value for organizations of all shapes and sizes.
A common question we hear from procurement professionals is: “Where can a GPO generate the most value for us? We have dozens of categories - where exactly can you help us secure the best volume discounts?"
Here’s the short answer: as your GPO, our value spans a wide range of indirect spend categories, where we save you time, effort, and money.
Are you ready for the longer answer? Then read on. This guide is designed to show you six areas where GPOs can make the biggest impact.
But first, let’s clarify the difference between a horizontal and vertical GPO, and explain why horizontal GPOs are strongest in indirect categories.
Types of GPOs
There are two types of GPOs. Each set-up aims to serve different segments and industries.
- Horizontal GPOs: These GPOs (like Una!) serve organizations spanning all markets and industries. They work with businesses of all shapes and sizes, offering assistance on a broad spectrum of goods and services, mostly related to indirect spend.
- Vertical GPOs: These GPOs serve niche segments and are usually created as a way for management or association groups to benefit their member companies. This type of GPO is commonly found in the healthcare, hospitality, dental and veterinary industries.
Why are Horizontal GPOs Most Effective in Indirect Categories?
You might wonder why horizontal GPOs excel in indirect procurement. Well, it boils down to volume. Direct purchases, whether goods or services, tend to have lower volume than indirect ones.
Let’s break it down:
- Direct Procurement: These are purchases that directly contribute to producing a product or service. Think raw materials or specialized machinery, like automotive parts. These items usually have specific, lower volumes.
- Indirect Procurement: These cover everything else that keeps the business running smoothly, like cleaning supplies, office furniture, or IT services. Since every business needs these items, the volumes are typically much higher!
Because indirect categories are so universally needed, horizontal GPOs can leverage this high volume to secure bigger bulk purchases and massive supplier discounts.
For instance, if you're in the automotive industry and looking for specialized parts, a horizontal GPO might not be your best match since the volume isn't there. Instead, you’d benefit more from a vertical automotive GPO that specializes in your niche.
However, when it comes to cutting costs and streamlining procurement for indirect products like cleaning supplies, catering, shipping, or telecom services, that’s where we really shine! The volumes are higher, and that’s where we can harness the incredible power of volume purchasing.
Now, let’s dive into six categories where GPOs deliver the most value.
Corporate Services
Document Storage | Promotional Items | Shredding | Translation | Uniforms
Unlock savings in various indirect spend areas like shipping, translation services, document shredding, uniforms, corporate travel, and more.
Why It Matters
Procurement for these services is often all over the place, managed by different departments or regions. This can lead to inconsistent suppliers and pricing, which means you might be missing out on better deals.
How a GPO Helps
- Combine Your Spending: A GPO brings all those scattered purchases together under national contracts, helping you snag better prices.
- Trusted Suppliers: We vet suppliers to ensure you get reliable service and consistent quality, no matter where you are.
- Easy Savings: Enjoy the benefits of savings without disrupting your day-to-day operations.
Real Savings With Una
Our team worked category by category with a network of behavioral health centers, conducting spend analyses, comparing current pricing to our pre-negotiated contracts, and working with National Account Managers to ensure members are able to start saving immediately.
As the number of facilities continued to expand and as they hired more staff, it was crucial to secure a discount on branded uniforms and other items for their employees. Next, our team tackled office supplies so they could stock new and existing locations, and examined their JanSan spend to secure savings on industrial supplies and facilities maintenance.
Our ability to run cost analyses based on the member’s current spend data allowed us to present accurate depictions of the savings they’d be able to capture by participating in Una’s group purchasing platform. Connection was fast, too. In one instance, they were taking advantage of discounted pricing within two weeks of joining Una.
Combined, this member was able to save an average of 27% across all categories of spend, including 20% savings on Uniforms.
Food & Food Distribution
Catering | Foodservice Supplies | Ingredients | Packaging
Catering, food distribution, and other food-related services needn’t be so expensive. Band together with other organizations under a GPO’s umbrella to drive down the cost of this category.
Why It Matters
For organizations with cafeterias, food production, or hospitality services, food procurement can be a bit of a rollercoaster. Prices can fluctuate and lead to unpredictable costs.
How a GPO Helps
- Bulk Buying Power: A GPO taps into volume pricing with major food distributors, helping you score better deals.
- Consistent Pricing: Lock in steady prices on the items you use most, so you can budget with confidence.
- Sourcing Flexibility: Whether you’re looking to support local farmers or need national suppliers, GPOs have your sourcing goals covered.
Real savings with Una:
Campus Cooks, a foodservice provider supporting Greek chapters, had nearly every aspect of the business perfected, including having built strong relationships with local food vendors in various regions. At times, however, it is necessary to source items and ingredients from larger national distributors. It was here that Campus Cooks ran into roadblocks securing favorable prices and being able to count on reliable customer service.
Our team walked the procurement manager through the streamlined connection process and provided market baskets (here’s a sample) to show potential cost savings.
Una’s expansive contracts with larger national food distributors helped secure discounted pricing and improved customer service experiences for Campus Cooks. What’s more, the relationships Campus Cooks have in place with local vendors remain intact. Chapter chefs now have access to additional contracts through Una to support their ordering needs. Una’s contracts can be used free-of-charge as they see fit, with no long-term commitments or product limitations.
The trusted partnership between Una and Campus Cooks means that Greek houses around the country are saving up to 15% more on food costs.
JanSan & MRO
Cleaning Supplies | Maintenance Equipment | Safety Gear | Tools
Unlock savings on all your industrial supply and maintenance needs.
Why It Matters
Janitorial and maintenance categories often deal with rogue spend and a lack of standardization, especially in multi-site environments. This can lead to inconsistent quality and unexpected costs. Consistency matters, particularly when it comes to safety.
How a GPO Helps
- Access to National Supplier Contracts: Tap into pre-negotiated agreements that provide competitive pricing and reliable service.
- Standardized SKUs: By standardizing product lines, GPOs help control costs and ensure you receive consistent quality across all locations.
- Reduced Overhead: Say goodbye to the hassle of managing countless low-volume suppliers. GPOs streamline your procurement, making it easier to focus on what really matters.
Real savings with Una
Una and Ascend Wellness Holdings worked together to tackle their JanSan and MRO categories to better understand what was being spent, and where, as Ascend Wellness continued to expand. Several locations in varying states meant spend visibility was low and AWH needed a way to ensure their already-lean procurement team had an easy and accessible way to purchase what they needed to get new locations up and running.
Savings percentages in this category were lower than others, but when it comes to millions of dollars spent each month, even a 5% savings adds up to a significant amount.
Office Supplies
Paper | Ink & Toner | Furniture | Break Room Products
Just about every business needs office supplies, which means there is enormous potential for bulk discounts in this very high-volume, indirect category.
Why It Matters
Employees unknowingly become spend mavericks when they make individual purchases of office supplies that can lead to inflated, untracked costs. Without a centralized procurement process, companies risk overspending and inconsistency in quality.
How a GPO Helps
- Consistent Pricing: Enjoy reliable pricing on core items, so you know what to expect every time you order.
- Governance and Control: We add structure with catalog controls and spend limits, helping you manage budgets effectively.
- Sustainability Support: We prioritize vetted green suppliers, so you can feel good about your purchases (such as office paper) and their impact on the environment.
Real savings with Una
Before joining Una, the same behavioral health center network realized that without mature procurement policies or strategies in place, spend was going unmanaged in several categories including office supplies. Staffing to handle their procurement needs was also limited, which meant they didn’t have the time available to search for suppliers or negotiate contracts and pricing.
After some initial research, this member realized that bringing in a third party like Una was the resource they needed to support and continue their remarkable growth.
We conducted spend analyses, compared current pricing to our pre-negotiated contracts, and worked fast to ensure they could start saving immediately.
The result? An impressive 49% saving on office supplies.
Shipping & Packaging
Small Parcel | Freight | Corrugated Boxes | Custom Packaging
Save more from global packaging and supply management distributors and the nation's leading brands with group purchasing.
Why It Matters
With logistics costs on the rise and supply chains vulnerable to disruptions, only the largest organizations can negotiate favorable terms with carriers on their own. This can lead to unnecessary expenses and inefficiencies.
How a GPO Helps
- Unlocks Deep Discounts: Gain access to significantly reduced rates with major carriers, maximizing your savings.
- Analytics Tools for Optimization: Some GPOs can provide access to powerful analytics tools to streamline your shipping processes and improve overall efficiency.
- Simplified Carrier Selection: GPOs make it easier to choose the right carriers and conduct invoice audits, saving you time and reducing headaches.
Real savings with Una
A medical equipment manufacturer ships and receives millions of dollars worth of packages every year. Having reliable shipping providers is a must, as the health of their patients depends on getting testing done right and results returned to their doctors quickly.
With significant shipping costs adding up and limited procurement resources at their disposal, this member needed help establishing a relationship with a trusted shipping partner, as well as securing discounted pricing on various shipping rates.
After an initial discovery call, the Una team conducted a spend analysis to highlight the savings opportunities available with our discount shipping programs. The information was compared across several shipping providers to ensure the best value was found for the organization. Thanks to the strength of Una’s established supplier relationships and pre-negotiated contracts, this member is now saving over $650,000 a year in shipping costs.
Telecom & IT
Mobility Plans | Internet Services | Hardware | Software Licensing
GPO members unlock a powerful array of technology vendors, providing incredible savings across their entire IT stack.
Why It Matters
IT spending is strategic but can often become complex and decentralized, leading to challenges with renewals, vendor lock-in, and shadow IT. This can create unnecessary complications and costs for businesses.
How a GPO Helps
- Pre-Negotiated Rates: Access competitive rates for telecom, mobility, and cloud services, ensuring you get the best value.
- Vendor-Neutral Advice: Receive impartial guidance for hardware and software purchases, helping you make informed decisions.
- Renewal and Compliance Management: GPOs can assist in managing renewals and reducing compliance risks, so you can focus on what truly matters.
Example Use Case
A growing nonprofit used a GPO to consolidate its telecom plans across states, leading to a 30% reduction in monthly phone bills and simplified vendor management.
Final Thoughts
Every procurement team has categories that don’t warrant a full sourcing event, but still need attention. GPOs shine in these areas, turning fragmented indirect spend into strategic wins. The result? You gain time, control, and measurable value, without the friction.
Ready to get started? It’s as easy as 1, 2, 3:
- Our team likes to begin each relationship with a 30-minute discovery call. It’s a two-way chat between you and one of our Sourcing Advisors to help decide if we’re a good fit. They'll ask a series of questions about the challenges you’re facing and the goals you plan to achieve. We want to understand what success looks like for you, so we can determine the opportunities and timelines involved.
- Next, we conduct a cost analysis, one category at a time. This will help us identify potential savings, improve spend visibility, look for opportunities for consolidation and streamlining, and benchmark your current pricing.
- Finally, we'll help find and connect you with top suppliers to lock in savings. Una’s catalog of pre-negotiated contracts is already in place, meaning you will get access to the best possible pricing, fast.
Be empowered
We’re here to simplify procurement and empower organizations through increased buying power, comprehensive savings solutions, and superior service. Utilize our vast supplier portfolio and save more money, time, and effort with Una.
Getting started is easy. And really – it’s free!
