Whether you're a property manager or asset manager, partnering with a GPO can provide you with the tools and expertise needed to optimize your procurement processes, enhance your bottom line, and ensure long-term success.
In this article, we鈥檒l explore how GPOs can be a game-changer for real estate
What do GPOs do?
The plain and simple answer is that GPOs save you time and money. Members gain access to contracts already negotiated with top suppliers, which takes the stress of RFPs off your team. Plus, some GPO memberships are FREE and come with no order minimums or obligations.
GPOs extend your team
Imagine you鈥檙e facing a significant renovation project with limited resources and no clear starting point. This is where a GPO steps in. Some GPOs offer access to who provide invaluable support, such as:
- Offering strategic insights and guidance throughout the procurement process
- Helping members develop long-term strategies that align with their goals
- Identifying cost-saving opportunities to optimize operations
With this expert assistance, your team can easily ensure your project stays within budget and aligns perfectly with your organizational objectives.
GPOs drive significant savings
One of the most compelling benefits of working with a GPO is the potential for substantial cost savings. By leveraging the collective buying power of its members, a GPO can negotiate better terms and conditions with suppliers, resulting in lower prices and higher service levels.
Take this leading multifamily real estate management firm with over 50,000 units across 200+ properties, . They faced challenges with unregulated spending across their properties.
By partnering with a GPO, this organization transformed their unmanaged spend into a structured National Account program. This included a 10% discount on select products and a 50% discount on the annual subscription for the first two years, leading to significant savings.
GPOs help mitigate risks
Inadequate supplier vetting and onboarding can expose real estate operations to various risks, from regulatory non-compliance to compromised service levels. These issues can have far-reaching consequences, such as:
- Damaged brand reputation: Potential tenants or investors may be deterred by a poor brand image.
- Operational inefficiencies: Delays in property management tasks can disrupt your real estate portfolio's overall operation.
- Decreased resident satisfaction: Compromised service levels can lead to higher tenant turnover.
- Increased operational costs: Higher costs can erode your profitability.
- Revenue loss: Operational inefficiencies and service issues can result in lost revenue.
- Stakeholder discontent: More complaints from stakeholders can drain your resources and time.
GPOs help mitigate these risks by closely monitoring evolving regulations and assessing compliance, all while acting as an extension of your team. By prioritizing compliance and customer needs, GPOs provide a streamlined risk management approach, giving real estate owners and operators the confidence to focus on their core business.
Is Group Purchasing right for your organization?
After reading the above, what do you think? From cost savings to risk mitigation, GPOs provide a wide array of benefits tailored to the needs of commercial real estate and multifamily housing.
Let us know in the comments if you think using a GPO would help your organization鈥檚 operations run more efficiently.