Group Purchasing Organization, Supply Chain Consulting & Digital Health

As technology stacks expand and vendor ecosystems become more complex, effective procurement determines whether a company saves money or leaks it. This approach aligns with the reality of B2B buying, which is typically done by groups of stakeholders. But the real game-changer is the incorporation of buying groups at the core, enabling companies to market to specific roles and personas within the context of the company. Not only does this save countless hours of manual research and guesswork, but it also automates the process, enabling companies to operationalize buying groups at scale. They let you know not only which buying groups to focus on, but also which roles, personas, and specific people to go after and who is most likely to be a decision maker for your products or services.

It was the de facto way to signal virtue to both customers and investors. Want to know about some of the organizations that have already begun this shift? To learn more about how to embrace the shift to buying groups, check out our latest research, Buying Groups For The Win. Making the shift to buying groups isn’t new news, but after Summit this year, it’s buying groups for the win. Making the move to buying groups is not just about improving conversion rates; it’s the shift from being revenue-obsessed to being truly customer-obsessed and better aligned to how businesses make purchasing decisions today. By focusing on buying groups rather than individual leads, we can meet these expectations, uncover more opportunities, and drive sustainable growth.

Horizontal GPOs are procurement groups that serve a variety of industries and diverse businesses. They might pay the same price per item even at larger order quantities simply because they lack the purchasing power of large-scale companies. Learn how Siemens, Zendesk, and Palo Alto Networks transformed their revenue strategies by moving from outdated marketing-qualified lead (MQL) models to a buying group approach. They are swayed by previous experience with a vendor, the caliber of customer support (which might be gauged during a trial period), and input from their peers and industry influencers. Marketers should create materials that address these concerns and, to appeal to external influencers, work to build a positive consensus in the marketplace through PR and brand-building efforts. What They Look For Influencers are swayed by knowledge of, or previous experience with, the selling organization (though typically not interactions with sales reps).

• QuickConnect to instantly reach hundreds of suppliers for bulk quotes, support, and more.
• This approach gets your deal moving again by encouraging potential leaders to take initiative—and giving them the support to do it well.
• This precision ensures the right message reaches the right people at the right time.

Benefits Of Being a Member of a Buying Group

A B2B marketing automation vendor pursues a $300K enterprise opportunity. Economic buyers validate budget availability, legal teams review contracts, procurement negotiates terms, and executive sponsors provide final authorization. Buying group members negotiate priorities, reconcile conflicting requirements, address concerns, and build agreement around a preferred solution.

If you're ready to transform your approach to procurement, explore the Virto Commerce Group Purchasing Marketplace to learn more. Whether in healthcare, food service, or manufacturing, GPOs enable organizations to streamline procurement and focus on their core operations. Companies can reduce costs, improve vendor relationships, and mitigate supply chain risks by pooling purchasing power. B2B group buying marketplaces, facilitated by Group Purchasing Organizations, have revolutionized procurement strategies for businesses across industries.

Risks to Know Before You Join

This approach gets your deal moving again by encouraging potential leaders to take initiative—and giving them the support to do it well. At this stage, your job is to reduce perceived risk and equip champions to win internal support. Since they are the people using the product, their focus is on ease of use and how the solution will impact their day-to-day responsibilities.

Vendors that understand this consensus dynamic succeed by engaging multiple stakeholders simultaneously with coordinated, role-appropriate messaging that addresses diverse concerns and builds group-wide confidence. For example, a buying group might include 12 stakeholders across departments, while the buying committee might be 4 executives (CFO, CIO, COO, CEO) who hold formal approval authority. Typical enterprise buying groups include 8-12 members across functions, each bringing distinct evaluation criteria and concerns that vendors must address IT buying group to win deals. A collaboration software company uses product-led growth to land SMB customers, then expands into enterprise departments.

They usually do this so they can get discounts on goods and services when volume buying which is mostly common in grocery and healthcare industries. The GPO’s main focus is to get members the most products but cost less without compromising the quality. Because it brings together a group of professionals whom you can quickly ask for materials or services. Working with a GPO lessens the risk of disruption in the supply chain.

This model benefits consumers through savings, while vendors increase sales through volume. Once the group reaches a predetermined size, the deal is activated, and all members receive the product at a discounted price. Such groups are particularly useful for small and medium-sized enterprises (SMEs) that may not have the volume of orders necessary to negotiate favorable terms on their own. By pooling their procurement needs, the members of the group can negotiate bulk discounts, better payment terms, and more favorable delivery schedules than they could achieve individually.