Ways a Group Purchasing Organization Can Help Combat Rising Costs
The multifamily industry continues to face economic headwinds. On top of major trends like declining rent growth, worker shortages and vacancies driven up by skyrocketing supply, expenses remain high.
With these trends keeping market performance below or at normal for the foreseeable future, now is the time to be smart about how you spend on the things needed to operate your properties. A simple solution for effective spend management is a Group Purchasing Organization (GPO).
A GPO pools together the buying power of multiple property management companies to access pre-negotiated discounts with a strategically selected group of vendor partners. For example, the eSupply GPO from RealPage® serves hundreds of clients and more than 3.6 million units, who together have access to discounts from a diverse list of trusted vendors. This is especially valuable for smaller operators that don’t have a purchasing department or purchasing staff.
Let’s dig into the top three benefits of a GPO and how they can impact your company’s bottom line.
1. Cost savings
The primary function of a GPO is its biggest selling point: Saving your company money through group purchasing discounts. It provides enterprise-level purchasing power to all properties in your portfolio, resulting in immediate savings and increased NOI. With eSupply, for example, multifamily operators can save up to $13 per unit annually.
With eSupply, we’ve unlocked purchasing power and efficiency.
Drew Cohalla
Operations & Communications Coordinator, Yarco Property Management
2. Access & time savings
While it’s easy to see the results of great deals and discounts, finding them can be a different story.
Through eSupply, customers are introduced to major vendors like Staples, Lowe’s Pro Supply, HD Supply and Leslie’s Pool Supplies without having to lift a finger. “Staples is proud to be a facilities vendor partner with eSupply...