Why group purchasing offers more than just buying power

When public sector organizations think of group purchasing organizations (GPOs), the default assumption is often that they exist simply to deliver savings through pre-negotiated supplier contracts.

While they do offer savings, the real power of GPOs – particularly service-oriented ones like Kinetic GPO – goes far beyond procurement catalogues and price lists.

GPOs today act as trusted strategic partners, offering an extra layer of support, expert guidance, and connection that helps procurement professionals and their organizations make more informed, compliant, and efficient purchasing decisions.

A Trusted Resource

Public sector organizations face intense pressure to deliver value while adhering to complex trade agreements and maintaining transparency with taxpayers.

In many municipalities, especially smaller or mid-sized ones, procurement teams are limited in size – or don’t exist at all. Even in larger organizations with procurement departments, the volume of work and urgency of demand can stretch capacity to the breaking point.

Take, for instance, the process of procuring a new service or piece of equipment from scratch. Between drafting documentation, putting it out to market, evaluating bids, and negotiating terms, the process can easily take three months or more. That is time and effort most municipalities don’t have.

With a GPO, public organizations can bypass much of that workload by selecting from a vetted, trade-compliant catalogue of contracts while receiving one-on-one guidance from a dedicated business development manager. This is not just a shortcut, it’s a safer, more efficient way to buy, with built-in compliance.

An Atlantic region procurement official at a higher education institution with a small procurement section agrees.

“We’ve been a member of a GPO for six years because of the time savings, competitive pricing, and compliance assurance,” they said. “Today, we are using 11 contracts through Kinetic GPO.”

Value-Added Expertise

At Kinetic GPO, service doesn’t end once a supplier contract is handed over. The organization is structured into three interconnected teams – business development, contracting and compliance, and supplier engagement – to support Kinetic’s members at every step.

Business development – Team members have backgrounds in public procurement and understand the complexities of sourcing decisions. They help members select the right methodology and walk through processes tailored to individual project needs.

Contracting and compliance – This team ensures every contract is developed using fair, open, and trade-compliant processes. They also interpret trade agreements and adapt as legislation evolves, helping members navigate shifting requirements with confidence.

Supplier Engagement – Ensuring performance and service delivery, this team monitors whether suppliers are meeting their contractual obligations and KPIs.

This internal expertise becomes an extension of the client’s own team. If they’re planning a project like a field turf installation, the team doesn’t just point to a supplier – they help scope the requirements, understand timelines, and plan strategically. It’s procurement support that aligns with the client’s operational and financial objectives while safeguarding compliance with public sector regulations.

Connecting Members Across Canada

One of the lesser known but highly valuable aspects of working with a GPO is the ability to connect with other members facing similar challenges.

Whether an organization is considering new procurement software, implementing policy changes, or rolling out new infrastructure, chances are someone else has already walked that path. At Kinetic, those introductions are facilitated – locally and nationally – so members can share lessons learned, best practices, and creative solutions.

While contracts are national in scope, they have strong local roots. Many suppliers on Kinetic contracts are represented by family-run or regionally based businesses. This ensures members can support local economies while still purchasing through trade-compliant frameworks.

In Atlantic Canada, for instance, a recently awarded furniture contract through Kinetic GPO is serviced by a well-established, family-owned distributor with deep community ties. Likewise, one utility vehicle suppliers work through a second-generation dealership with a strong local presence.

“Our local GPO representative has been fantastic to deal with,” said a higher education procurement official in that region. “She is in regular contact and is always providing support and updates on existing contracts as well as providing information on new contracts that are being offered.”

This kind of local engagement from both GPOs and their suppliers matters. Municipalities are under growing pressure to buy local, but they must still comply with national and international trade rules. Kinetic bridges this gap by offering national contracts with local representatives, providing both regulatory peace of mind and economic benefits to the communities being served.

Partnership That Goes Further

At a time when procurement teams are being asked to do more with less – and still maintain full transparency and accountability – partnerships with GPOs like Kinetic are becoming not just beneficial, but essential. We offer more than contracts. We offer clarity, community, and confidence.

“I highly recommend partnering with GPOs to bring real value to your organization and your vendors,” said Paul MacDonald, Hamster regional sales director for Atlantic Canada. “Unlike those who only chase the lowest price, Kinetic zeroes in on genuine cost management, unlocking meaningful savings and long-term sustainability for your operations.”

He adds Kinetic is also skilled at crafting agreements that protect client vendors, preventing scope creep, and balancing risks.

“This way, everyone wins – your organization saves money and builds stronger relationships, while vendors can deliver confidently and reliably,” MacDonald said. “It’s a win-win that sets the stage for a successful, long-lasting partnership.”

Contact Dana MacDonald at dana@kineticgpo.ca to learn more.

Dana MacDonald is vice president, business development and member experience, at Kinetic GPO.