Strategic procurement tips for SMBs​ in turbulent times

In today's dynamic business environment, small and medium-sized businesses face numerous challenges, from economic fluctuations to supply chain disruptions. Leveraging a Group Purchasing Organization (GPO) like Excelerate America provides significant advantages, including access to discounted pricing and a network of suppliers. To help you strengthen your procurement strategy in turbulent times, consider these 6 strategic procurement tips:​

1. Leverage spend and savings analytics​

Excelerate America offers services to help you analyze purchasing data. From total spend and savings to Core usage analysis and category spread, these details are accessible on a secure buying program page and by request. Utilize these types of resources to compare your spending against industry benchmarks, identify areas for potential savings, and ensure you're maximizing the benefits of your GPO membership.

2. Expand usage strategically​

GPOs traditionally provide access to a wide range of discounts across various categories. Make sure you review the ​buying programs available and identify those that align with your business needs. Strategically expanding your usage can lead to additional savings and operational efficiencies.

3. Request custom pricing​

While GPO contracts provide favorable terms, there may be additional opportunities for negotiation. For example, Excelerate America's GPO members can request custom pricing based on specific business needs and purchasing volume. This is a strategic way to safe-guard against price fluctuations.​

4. Optimize internal procurement processes​

Streamline your procurement workflows by setting clear policies on purchase approvals and ensuring all purchases align with GPO contracts. Encourage your team to purchase off the program’s list of discounted products (Core List) as much as possible. This approach helps in maximizing negotiated pricing and avoiding unauthorized spending.​

5. Utilize member dashboards

Excelerate America provides a member dashboard that can enhance your purchasing processes. Leveraging a platform like this helps your team access savings opportunities, purchase items from the Core List, and get real-time visibility into your company’s purchasing trends.​

6. Conduct a business review​

Regularly reviewing your contract utilization helps identify outdated pricing or potential areas for improvement. This practice ensures you're fully benefiting from your buying programs and can adjust your procurement strategies as needed.​ Excelerate America GPO members can request a business review by contacting our pricing team.

Using a GPO can give your business a leg up in terms of pricing and supplier access. Implementing these 6 strategies will help you fully leverage your membership. In turbulent times, it’s the businesses that actively optimize their GPO’s procurement strategy — not just passively use it — that come out ahead.