| What
is the cost of membership to Leverage’s
Group Purchasing Organization? |
| NO
COST TO MEMBERS
Our fee’s
are collected based off Contract Administrative
Agreements with the vendors that win the
contracts. |
| |
|
| What
is a GPO? |
|
A
Group Purchasing Organization (GPO) consolidates
the purchasing power of a large group of
separate entities to leverage the volume
in order to negotiate contractual discounts
from qualified, national suppliers of goods
and services. All participating entities,
regardless of size and location can benefit
from group purchasing. |
| |
|
| How
do you ensure a fair marketplace for your
vendor base? |
|
All
contracts are for 1-3 year periods. 2-3
months prior to expiration, Bids are re-opened
to all willing suppliers for a competitive
and fair process. Our goal is to ensure
our portfolio of vendor’s meets our
member’s needs with best in class
service levels at the lowest total cost. |
| |
|
| How
can you protect our company’s trade
secrets? |
|
All members’
volumes, pricing, technical and supplier
information are kept confidential. As a
member, Leverage makes available mutual-nondisclosure
agreements. |
| |
|
| Are
Purchasing Organizations / Consortiums Legal?
|
|
When
discussing Group Purchasing, most are concerned
with the Robinson-Patman Act, a law applying
to products but not to services. This Act
requires that favorable prices received
by the purchasing group must also be available
to comparable purchases, unless the pricing
differential is cost-justified or granted
to meet a competing suppliers price. Leverage
Purchasing Group is in full compliance with
all governing federal, state and local laws. |
| |
|
| Will
I maintain control of my procurement activities
if I join Leverage? |
|
Leverage
only manages the Master Purchase contract
which defines the pricing/discount structure.
As a member of Leverage all other aspects
of the supplier relationship, other than
price, remain under member control. Members
will still interact with their suppliers
for their tactical (day to day) operations. |
| |
|
| Can I still
use my current vendors? |
Participation
in Leverage contracts is on per agreement/vendor
basis. Meaning you get to pick and choose what
spend areas you would like to pool with us and
what existing Leverage Agreements you would like
to participate in. Member maintains full autonomy
to choose who to buy from. However, we hope you
discover that Leverage’s supplier agreements
will provide your company with the best price,
quality, and service available in the marketplace.
In some situations, we may already have National
Agreements with your current vendors and then
you can begin utilizing our contracts immediately. |
| |
| How do you
get suppliers to participate? |
Leverage
has the industry experience to educate suppliers
on the value of partnering with a Group Purchasing
Organization. We offer the benefit of higher volumes
and lower cost of business. Most suppliers are
excited to establish a relationship with a GPO
based on the Security and Sales growth opportunity
it affords. |
| |
| Can
we maintain our communication with the suppliers?
|
Member
companies will continue to conduct business with
their supply base, as usual, with the exception
of price negotiation, which will be determined
by the Leverage GPO contract |
| |
| Can
we cancel our membership? |
Membership
agreements may be canceled at any time, with a
90 day written notice. Upon the agreed upon termination
date, your company will no longer have access
to Leverage Supplier Agreements and Pricing. |
| |
| Additional
Questions? |
| If you have any additional questions, please feel free to contact us (678)778-6074 |
