14
December , 2017
Thursday

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Global MPG Group

Nationwide — The saying “there is strength in numbers, united we stand, divided we fall” may be the inspiration of Global_Mpg, a minority, veteran-owned (GPO) Group Purchasing Organization that is reaching out to minority small businesses to join its collective-buying group.

The Houston, Texas based business was founded in 2005 with the intent of becoming a buying group organization so that small businesses could leverage their indirect and direct purchasing spend as a group in order to get a lower pricing and improved terms and conditions.

Global_Mpg (Global Materials Purchasing Group) started with five companies with an eye on MRO industrial and office supplies, but quickly expanded into other sectors. Most of its current members customer base make the Fortune 500 or Fortune 1,000 lists.

They’ve chosen to bid for goods and services contracts in areas such as temporary staffing, pharmaceuticals, medical industrial, office supplies and logistics. Projects currently running include contracts for vendor-managed inventory, electrical, industrial, office supply and janitorial supplies.

“The most basic component is clearly that you’re thinking, ‘I can get this for less by participating in this aggregated model than I could on my own,’ but the value proposition goes well beyond that,” said company Managing Partner Bill Williamson.

Purchasing Group positive impact on the profits for each individual networked company

Did you know that a reduction in purchasing costs, for example of 5%, produces an increase in profits of more than 2% and that to obtain the same result, sales would need to increase by more than 20%…? This means that the savings generated by a centralization of purchasing in a network of businesses, will increase profits in each individual network company without having to increase sales. For full details, Global_Mpg has a news center page on its website at www.globalmpg.com

There’s a one-time guaranteed refundable administrative set up fee to join Global_Mpg (Global Materials Purchasing Group) but the company’s primary source of revenue are payments from the awarded suppliers.

Small businesses that find the administrative fee reasonable and are interested in contracts that will leverage their purchasing power. Includes billion-dollar firms and get pricing discounts no matter their size or purchasing budget.

Global_Mpg member Darts Packaging Inc. a company based in Pine Bluff , Arkansas, a contract packaging and private label co-packer, said the savings on office products alone would justify its membership, but it has found savings elsewhere.

The collective buying power will have more impact for minority owned and smaller businesses because they have less buying power alone. Contracts are negotiated in high volumes but you can order from them in the volume that suits your company.

 

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