Buying and selling in a complex world - Group purchasing companies
7 important questions on Buying and selling in a complex world - Group purchasing companies
What is a group purchasing organisation?
Which types of GPO are there?
- Horizontal GPO= Focuses on companies from different industries with overlapping supply needs. E.G. IT, Hardware, kitchen tools,..
- Master buyers= A single buying organization that contains significant contracts in place with vendors, allows other companies to purchase off those contracts. E.g. Automotive indrustry
What are the advantages of a GPO?
- It saves time
- Better knowledge of the market
- Better knowledge of the products
- Higher grades + faster learning
- Never study anything twice
- 100% sure, 100% understanding
What is the SWOT Analysis of cooperating with other companies?
- Weakness=
- Opportunity= Sharing and building knowledge
- Threat= Sharing of knowledge by all persons responsible and the purchasers themselves is not enough.
What is a membership?
Buyer power is likely to be high when:
- Alternative suppliers
- If the material cost is a high percentage of the total cost .
Supplier power will likely be high when:
- The ‘switching costs’ from one supplier to another in the industry are high, perhaps because a manufacturer’s processes are dependent on the specialist products of the supplier
There is the possibility of suppliers integrating forward if they do not obtain the prices, and hence the margins, they seek §The supplier’s customers and their long-term future are of little importance to the supplier
The question on the page originate from the summary of the following study material:
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