The Top Things to Look For With a GPO
/The buzz around group purchasing organizations (GPOs) has risen in the food service industry, with more catering professionals leveraging the cost savings afforded by GPO membership. However, plenty of business owners are still concerned about the risk of changing established procedures — and rightfully so. Scammers are always on the lookout for ways to deceive companies for personal gain, so trying something new can feel like a significant liability.
For some, the safety of “business as usual” is favored over the potential payoff of joining a GPO. However, when you consider forfeiting thousands of dollars in savings, the status quo no longer feels like the “safe” option. So, how do you take advantage of group purchasing benefits without getting ripped off?
The answer is simple: Find a trustworthy GPO.
Reputable GPOs put their members first, prioritizing both customer satisfaction and supply quality. The best part? They are free to join. As a responsible catering pro, you can do a test run with a GPO without incurring undue risk. No harm, no foul!
The first step is finding the right GPO to suit your business’s needs. Here are a few things to look out for when researching options.
Top-notch customer service
Your new GPO will become your partner in negotiating rates, placing orders, and scheduling deliveries. In other words, you need to be able to rely on them! Familiarize yourself with customer service to assess the quality of support. Is there someone readily available to answer questions? Do you have access to a local representative familiar with your market? Are they knowledgeable of the industry and able to offer insights?
While cost savings are an inherent benefit of joining a GPO, members should also feel like they’re gaining a team member with expertise in food sourcing, industry trends, and kitchen management. After all, GPOs work with thousands of restaurants and catering companies across the country, so they should be able to offer vast knowledge based on facts and observations.
Flexible terms of agreement
Trustworthy GPOs are designed to expand a catering professional’s access to supplies, so avoid signing a contract if it limits your freedom as a decision-maker. As a member, you should feel free to purchase as much (or as little) as you’d like with no defined frequency. You could place a large order every quarter, small orders every week, or anything in between — the point is that you get complete control over purchasing decisions. You should also be able to end your membership at any time without penalty.
Review the contract carefully, ensuring that the policies align with your goals. Look for restrictions on minimum orders, membership duration, or purchasing frequencies. Don’t be afraid to push back on unreasonable terms and walk away if you don’t feel comfortable proceeding with the agreement.
Well-known, reputable distributors
Most caterers have established relationships with food suppliers by purchasing directly from local farms, butchers, food markets, and larger wholesale retailers. If you’re hoping to try a new source, you’d expect it to measure up to (if not exceed) the quality offered by your existing suppliers.
When researching GPOs, inquire about the distributors they work with for your market. Ideally, they’ll source from a prominent national name like US Foods. If not, do your own research to evaluate the quality of products, customer service, and reliability. Online reviews are a great way to gain an unbiased perspective of food suppliers.
GPOs offer a no-strings-attached opportunity to save money and gain access to valuable insights from industry experts. It’s free to join, provides flexibility in your business, and only takes a minute to get started.
Clint Elkins is the V.P. of Sales for SB Value, a Group Purchasing Organization that helps culinary professionals save an average of 16% on every food order. Membership is 100% free. No hidden fees. No extra work. Just extra profits. See how much you can save on your next food order when you become an SB Value member. Request a quote today.
