Many companies assume that Group Purchasing Organizations (GPOs) are only beneficial for large enterprises or that they limit supplier flexibility. However, GPOs can help organizations of all sizes improve procurement efficiency and gain access to supplier programs designed to better manage costs across the hospitality and foodservice sectors. Understanding these common misconceptions is important when evaluating the value of GPOs.

Gain operational efficiencies when you know the facts

Getting locked into buying from a limited, inflexible list of suppliers is one of the myths we hear a lot. It’s one of the biggest fears and greatest roadblocks holding operators back from working with group purchasing organizations.

But what are the facts? What can you buy and who can you buy from when you work with a GPO?

MYTH: “I'll have to give up my favorite suppliers.”

Not necessarily, but you may choose to. For example, let’s say you have a relationship with a partner who supplies barbeque sauce. This product meets your budget and quality requirements. You can continue working with this supplier as long as it makes sense for your business.

FACT: A flexible GPO like Entegra doesn’t require clients to give up any of their current suppliers. We encourage you to explore our suppliers to see if you can get the exact product at a lower price. Operators are not obligated to buy from any supplier. In fact, you can choose to continue purchasing from your current supplier or buy the same product using Entegra’s program and discounts.

You can also work with Entegra Culinary Consulting for product cuttings and product matching, a process where our in-house chefs work with you to help you select alternate products to meet your needs at an even better cost.

MYTH: “I can only get food, so I’ll still need to shop around to get everything I need.”

Some GPOs specialize in a few categories. And some may only work with specific industries. You'll want to find a partner that offers you the flexibility to select suppliers that offer the right products, pricing, and delivery options for your business. This will help you maximize your purchasing power.

FACT: A large GPO like Entegra offers a wide range of suppliers and contracts, and it’s not all food. Entegra has over 1,500 national and regional suppliers and can provide savings on almost everything you buy for your business. Restaurants, hotels, golf and leisure and senior living communities turn to Entegra as their preferred partner for savings throughout their businesses.

From bedding to flowers to refrigerators, Entegra is more than a food GPO. We’re a business performance improvement company that delivers both cost savings on food and supplies, as well as operational efficiencies and services.

Browse Entegra’s guide to operational efficiency.

MYTH: “I have multiple units. I’ll lose control over what they purchase.”

Many operators fear that their units could buy off-contract and exceed their budgets.

FACT: Instead of losing control, a GPO like Entegra gives you more insight into what each unit is buying.  Entegra also has an easy-to-install browser extension that lets you see savings opportunities as you browse and shop on two major distributor e-commerce sites. The tool, Entegra Shopping Assistant, currently works on two major distributor e-commerce sites with more coming soon.

Explore Entegra’s data and digital solutions.

By debunking these common myths, operators can see how GPOs can help purchasing departments achieve greater efficiencies and cost savings. 

The comparison below highlights several common myths about GPOs and how modern procurement programs may support business operations.

Why Understanding GPO Myths Matters

Misconceptions about Group Purchasing Organizations (GPOs) can create confusion around supplier relationships, purchasing options, and procurement management in multi-unit operations. Understanding how GPOs actually work can help organizations better evaluate the opportunities these programs offer.

Companies may choose to use GPO programs to improve:

• Visibility into purchasing across multiple locations
• Supplier coordination and procurement management
• Cost efficiency and spending control
• Access to supplier programs and negotiated agreements

• Digital tools, reporting, and data-driven insights

   

We’re here for you! Explore a strategic partnership that drives your business goals, improves supplier relationships, and enhances the overall procurement process.

Contact us to start saving today and achieving greater business efficiencies!

FAQs

Why do some businesses have concerns about joining a GPO?

Some businesses may have concerns about supplier flexibility, purchasing control, and operational changes when evaluating programs offered by Entegra and other GPOs.

Do GPOs only support large companies?

No. Many small and mid-sized multi-unit hospitality businesses also participate in procurement programs to improve purchasing efficiency and cost management.

Why do businesses misunderstand how GPO programs work?

Misunderstandings often stem from assumptions about reduced supplier choice or limited procurement flexibility within GPO programs.

Do GPOs help businesses improve purchasing visibility?

Yes. Procurement programs, including Entegra’s purchasing and digital solutions, can provide tools that improve visibility into purchasing activity across locations and suppliers.

Do GPOs only focus on food purchasing?

No. GPO programs may also include a broader range of categories beyond food, depending on the provider and the organization’s needs.

How can understanding GPO myths help businesses make better decisions?

Understanding common misconceptions helps business owners evaluate procurement programs more accurately and make more informed purchasing decisions.