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Spot the Difference: Buying Groups, Purchasing Cooperatives, and GPOs

Spot the Difference: Buying Groups, Purchasing Cooperatives, and GPOs

Group purchasing organizations (GPOs), purchasing cooperatives, and buying groups all boost purchasing power but differ in structure. GPOs pool members across industries to negotiate discounts (often 18–22%), typically free to join since suppliers fund them. Cooperatives are member-owned, industry-specific, and require fees, with savings and profits shared among members, fostering collaboration. Buying groups are flexible, short- or long-term arrangements formed for bulk deals, such as trucks or PPE, often led by one negotiator. While GPOs emphasize broad savings, cooperatives focus on shared industry goals, and buying groups offer situational flexibility.

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