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7 reasons transparency, flexibility are key to a successful GPO partnership

January 16, 2024

Unexpected fees, pesky minimums and rigid supplier choices are less than ideal. When it comes to your GPO, insist on pricing clarity, a bounty of vetted suppliers and out-of-the-box ideas that drive your bottom line.

Whether you are a small boutique hotel group, global lodging chain or busy hotel management company, transparency and flexibility are inherent to a winning GPO relationship.

As a busy lodging pro, efficient procurement and a profit-boosting VDA (Volume Distributor Allowance)* are critical. You need clear answers to questions like these from your GPO:

  • What are my overall savings?
  • Which of my locations earn the highest savings?
  • Which suppliers are providing the most savings? 
  • How can I save more?

A commitment to transparency and flexibility ensures you easily get answers to the above questions and others like them. Read on for the seven top ways transparency and flexibility matter when it comes to a winning GPO relationship.

  1. Clarity is key

    “Transparency is everything,” says Katie Noble, an Entegra National Account Executive whose clients lean on her for out-of-the-box thinking that drives business performance. "We're committed to fully disclosing savings and rebates earned through purchases—and avoiding any hidden complexities," she continues.

    Simply put: The level of transparency you get from a GPO makes purchasing, optimizing and auditing your procurement process easier.
     
  2. Pricing transparency fuels success

    Minimizing complexities for clients is a key Entegra focus.

    For example, many lodging businesses find it challenging to correlate the rebate checks they receive with their actual purchases, making it difficult for them to optimize their purchasing behavior.

    At Entegra, clients get access to financial information down to the line item. Item-level visibility allows you to accurately track, predict and optimize rebate earnings.
     
  3. Supplier choice is foundational

    ATMs, elevators, temporary housekeeping services: The supplier choices offered by your GPO should never be set in stone. Entegra typically offers several suppliers for clients to choose from within any category.

    With Entegra’s regional Local and Direct Programs, you can go beyond broadline purchases. Labor services, furniture, facility equipment — all of your operational needs are readily available. And if you don’t find a product or service you need, Entegra:
     
    • Searches for the highest quality options
    • Obtains deviated pricing
    • Works with you on the final buying decision
    • Assists in new supplier setup
       
  4. Adaptability and consistency matter.

    At Entegra, we know that lodging supplier choices are ever-evolving based on changing procurement needs. We offer:
     
    • Customized sourcing options: Entegra fills any product or service gaps, sourcing options that may not already exist in our current supplier base.
    • Convenience is key: Countless regional options via our Local and Direct Programs are readily available.
    • Our distributor-agnostic approach allows you to select the best distributor to suit your needs.
    • No product compliance requirements: While choosing Entegra-contracted products secures higher savings, you and your teams are still free to purchase non-contracted items if that is something you prefer.

    Our deep bench of industry experts understands unique hospitality challenges — and opportunities.
     
  5. Flexibility drives revenue.

    Who doesn’t love supplementary revenue?

    ATMs, electronic vehicle charging, vending machines — a flexible GPO supports initiatives that boost the bottom line. From sourcing ancillary profit-making opportunities to getting them up and running, Entegra is a true business partner.

    “Flexibility isn't just about saving money, it's also about growing money,” adds Noble. "At Entegra, we’re always looking for ways we can potentially increase the scale and scope of our clients' rebates." 
     
  6. Advance data and analytics are table stakes.

    With the right GPO, making data-driven decisions with confidence is within reach.

    Self-service Entegra PurchasingIQ empowers you to track spending, compare it to industry benchmarks and identify areas for further cost savings.

    Prefer the human touch? Entegra’s national account directors, regional account teams and call center help to navigate all the data points.
     
  7. Tapping trends is good business.

    Trendspotting keeps lodging leaders ahead of the competition. Think zero proof mocktails, Taylor Swift-sized events and keeping an eye on commodity pricing to fuel accurate forecasting. Trends-based knowledge is power.

    With 1,500 suppliers and hundreds of hotel operators, introducing trends and innovations to clients is part and parcel of an Entegra partnership.
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    Check out our FAQ for more GPO-related questions and answers.

Call us at 833-977-1765 or contact us to get more information about putting Entegra’s purchasing power and business performance improvement solutions to work for you.

*What is a VDA?
A VDA (Volume Distributor Allowance) is a manufacturer discount based on the purchase of large volumes of merchandise. A VDA is also referred to as “deviated pricing.”

January 16, 2024

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