Does anyone know how a Group purchasing organization (GPO) Platform works?
I've heard that a lot of GPOs work like this.
They have a platform that members can access for free.
Members get a unique ID and can scroll through a catalog of contracts.
They choose the contract they want and activate it. Now when they buy from that vendor they present their ID and get the discounted prices.
They procure normally and directly with the supplier.
The supplier then pays admin fees usually 3-5% of each purchase by members to the GPO.
How on earth does this work?
How do they track if the suppliers are giving the right numbers?
What info do they show on their platform ?
What do they negotiate and do they setup volume tiers ?
just overall does anyone know the blueprint or example of how they work.
I CANT FIND A SINGLE DEMO OF A PLATFORM. IS IT A MARKETPLACE OR WHAT??