1. CAN A GPO ACCOMMODATE MY UNIQUE REQUIREMENTS?
Fulcrum operates within a flexible framework that allows clients to enjoy all the benefits of leverage while retaining the ability to negotiate adjustments and incorporate options that address specific needs. Fulcrum’s clients participate fully in the structuring of the supplier agreements and understand the need for flexibility
2. WILL A GPO LOCK ME IN?
Clients leverage the category offerings and other services based on their unique needs and where the most value can be driven
3. CAN WE REALIZE GREATER SAVINGS ON OUR OWN IN SOME OF THESE CATEGORIES?
Possibly on some core products where volumes are very high or where you need strategic partnership with the supplier; however, in most cases greater savings are achieved through GPOs. In addition to the hard savings, the company is bypassing the time-consuming RFP and sourcing processes and gaining the flexibility to impact other areas of spend and focus on more strategic initiatives
4. ARE GPOS COMPENSATED THROUGH SUPPLIER REBATES BUT THE CUSTOMER CAN'T SEE THE AMOUNT?
Fulcrums’ agreements cover the cost of rebates or percentages paid by the vendor to us. Savings are still attractive even after the percentage commission paid to the Fulcrum. The compensation is transparent to participants
5. ARE GPOS GEARED TO ENCOURAGE MORE PURCHASING, NOT LESS, WHICH IS THE BEST PATH TO SAVINGS?
Functional spend owners work with their supply partners to better understand the needs of their end users and create approaches that satisfy their requirements while reducing excess usage. Fulcrum facilitates these discussions by providing benchmarks across their clients so individual clients can establish achievable metrics
6. DOES FULCRUM SELECT SUPPLIERS BASED ONLY ON LOWEST COSTS?
A qualitative analysis and scoring is included in the selection process. Additionally SLA’s and continuous improvement will be considered in contract terms.
7. GPO MEANS SWITCHING SUPPLIERS?
Corporate procurement initiatives are about saving money, so yes, some changes will benecessary. But in our experience, companies tend to be happy with their new suppliers. Fulcrum have processes that smooth supplier rollouts to new customers.
8. WHY WOULD I WANT TO RISK REDUCING MY OWN RELEVANCE BY OUTSOURCING PROCUREMENT?
As a hybrid outsourced solution, Fulcrum actually addresses this concern rather than creating it. By partnering with Fulcrum, the procurement function expands the scope of its control and enhances its relevance to the organization