PURCHASING POWER (GPO)
 

Purchasing Assistant™.
Clients have the option to utilize their own vendors and pricing, or participate in ER Technologies Group Purchasing Organization (GPO). In either case, item pricing is accessible in two formats, static, or dynamic.

Static v. Dynamic Pricing 

Static pricing is provided as a ‘hosted’ master database file with retail pricing based on the cost of goods to multiple national vendors. Clients can elect to utilize items offered by one, or multiple retail product sources. The choice is often based on the dollar size of a clients annual spend, or ship-2 locations. 

Dynamic pricing is more often utilized in a purchasing environment where-in large quantities are being purchased by a central Purchasing department, or when a Request for Quote (RFQ), is involved. In certain cases, individual Ship-2 locations can utilize Dynamic Pricing as they ‘Punch-Out’ to place orders that are offered by vendor on their web based shopping cart platforms. 

Product Selection

Clients participating in the Group Purchasing Organization will have access to multiple national vendors 'best buy' lists of several thousand items. The lists will be based on historic client needs and will be updated on an ongoing basis.

Savings
 

Product cost savings are achieved from the applied use of collective buying power and retail vendor gross profit margin control. By combining our clients annual spend and product usage, we have assembled a master list of approximately 2,500 products typically purchased by banks and non-profits.

Invoice Verification

During the procurement process, each item's price is either drawn from a hosted file, or from a vendor's online catalog via a 'punch-out' process. In either case, during the receipt of goods, each item's price listed on the vendor's invoice is 'matched' against the purchase price to close the audit trail. This information is then available for Accounts Payable for processing payment.  


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    Procurement Expense includes
    the cost of processing a Purchase
    Order, and the retail cost of goods.

    Automating processing tasks can
    reduce the cost of labor by over 60%.

    Increasing buying power can
    increase discounts by over 20%.

 

 

 


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