What is a GPO?
A group purchasing organization is an entity created to help its members realize savings and efficiency by leveraging the buying power of the group to obtain discounts from vendors, manufacturers and distributors based on the aggregated purchasing volume of the members.
What types of products and services are available to purchase through the Capstone contract portfolio?
Why should my organization consider joining Capstone?
Becoming a member of Capstone provides limitless opportunities for savings on products and services that businesses purchase on a regular basis. With a focus on cost reduction, Capstone offers members the ability to strengthen their bottom line.
Increased buying power means deeper vendor discounts. Rather than negotiating pricing with vendors based on the purchasing volume of a single location, Capstone allows you to take advantage of the purchasing power of thousands of locations. Premier and Capstone have dedicated contracting teams that specialize in negotiating multi-year agreements which means price stability for longer terms. Not only do members save money, but they also save time and enjoy increased efficiency, enabling them to focus on responsibilities other than contract negotiation.
2. Free Membership…
You can be confident in your decision to join Capstone since there are no membership fees, no annual dues, or purchase commitments – only opportunities for savings.
3. Quality Purchasing with Lower Risks…
With over 1,000 nationally recognized vendors as part of the program, you’ll continue to do business with many of your current vendors you’ve grown to trust. To receive additional savings, you may also consider new vendors. Embarking on a new vendor relationship typically carries a certain degree of risk since there’s no established track record. With Capstone and Premier, you can have confidence in the vendor partners included since vendor selection is driven by a committee of members who evaluate potential vendors in various categories to ensure credibility.
4. Dedicated Account Manager…
Capstone provides a dedicated account manager to partner with our members to help identify savings opportunities that can provide the most significant impact to the bottom line. We collaborate with our members to understand their individual needs and recommend vendors that can provide solutions. Our experience is a valuable resource for members, especially when it comes to sourcing new and unique products or services.
If there are no membership fees, how do GPOs make a profit?
Suppliers recognize the benefits of having their products and services promoted by reputable GPOs like Premier and Capstone. In exchange for this exposure to their membership, suppliers pay a nominal fee to the GPO, which allows the GPO to offer their services at no charge to the members.
What is the Safe Harbor law?
The Safe Harbor law requires all GPOs, including Capstone, to annually disclose the administrative fees paid to them by the suppliers as a result of each member’s purchases.