The advent of the Group Savings Organization (GSO) has once again revolutionized procurement, enabling maximum savings while also generating revenue.
Unlike the concept of a GPO, which relies on bulk buying power, a GSO negotiates greater savings at a transactional level using data-driven analytics and proven processes. Group Savings Organizations work for procurement departments precisely because they counteract the advantages that sellers have long benefited from.
An appropriate GSO-connected firm can effectively negotiate each transaction on behalf of its members and instead of a share-back based on the amount purchased, the rebate is based on the dollars that are tangibly saved.
Members of the GSO agree to allow for a minimum percentage of their technology procurement, or spend commitment, to be handled by the GSO service delivery team. The larger the commitment, the greater the share ratio, savings, and ultimate share-back.
Spend commitments would be based on annual CAPEX and OPEX budgetary spend. An expected share ratio would be calculated with a portion paid upfront. These monies can be used for unbudgeted capital projects, transformation initiatives, or resource needs.
The GSO receives no credit/bonus or benefit for the number of contracts signed and it does not receive fees based on the dollars its members spend. The GSO is simply compensated on savings gain-share.
“For the first time, the financial interests of the members
and the organization that handles their purchasing
are in complete alignment.”
As a member, you get access to the GSOhub member portal. This exclusive site allows you to track your deals and savings.