A guide to GPOs — Group Purchasing Organisations — for busy procurement professionals
For British hospitality operators, the latest Autumn Budget has introduced a challenging financial landscape, with new and increased costs that could threaten profit margins.
From significant wage hikes to National Insurance increases and reduced business rate relief, the budget’s measures will require operators to re-evaluate their approach to cost management strategies in 2025.
The power of group purchasing
How Entegra’s GPO Services Can Offset Budget Impacts
Bulk Purchasing Power: Entegra consolidates the purchasing volume of its members, enabling individual operators to access lower prices on everything from food and beverage supplies to room amenities.
Cost Management and Efficiency Solutions: Entegra provides tools and insights to help operators identify and act on cost-saving opportunities.
Value-Added Services: Beyond purchasing power, Entegra offers value-added services like market insights, advisory services, and procurement optimisation.
A group purchasing organisation helps businesses save money and improve efficiency by leveraging collective buying power to negotiate better deals with suppliers. Essentially, a GPO pools the purchasing power of its clients and uses that volume to secure discounted pricing, rebates, and other benefits.
Challenge Solution
Ensure a steady supply of key ingredients Protect margins from inflation
Meet sustainability goals
Attract new customers or clients
Tackle labour shortages
Save more on the cost of food and supplies
Access a network of national, regional and local suppliers
Purchase more responsibly
Innovate menu, renovate space, market more effectively
Work with an agency to provide flexible staffing solutions
What to consider when choosing a GPO
Not all GPOs are created equal. While most GPOs have similar business models, asking questions to understand the differences between GPOs, will help you select the one that meets your current needs and growth goals.
A good GPO will offer a basic level of cost savings on a limited number of items or categories of products you buy for your business.
A better GPO will have a wider selection of products beyond the F&B category and offer some support.
A best-in-class GPO has a large network of national and local vetted suppliers, category expertise in your industry, robust data and digital tools and transparent pricing. While delivering cost savings is a feature of all GPOs, a best-inclass partner will also provide excellent customer service, market intelligence, business performance improvements and help with corporate social responsibility (CSR) goals.
Checklist for selecting a GPO
10 questions to ask before deciding to work with a GPO
Are there fees to join or hidden fees in the contract? Yes No
Are there order minimums?
Yes No
Can you negotiate contracts for my specific needs? Yes No
Is there a wide selection of items beyond food and beverage for my business?
Are there multiple suppliers to choose from in the categories that I buy from?
Can I achieve cost savings for the items I most often buy?
Yes No
Yes No
Yes No
Does the GPO provide value beyond F&B cost savings? Yes No
Can the GPO help us with managing purchases and delivering a consistent brand experience across our locations?
Will I have pricing transparency including item-level visibility so I can accurately track, predict and optimise my rebate earnings?
Does your GPO have tools that help me manage ordering across multiple locations?
Will my corporate social responsibility goals and objectives be supported?
Yes No
Yes No
Yes No
Yes No
What to know about switching GPOs
Have you outgrown your current GPO relationship? You might be facing growing pains, struggling to communicate effectively with your GPO, or feeling that the relationship has become purely transactional.
Wayne James-Green, Entegra’s Head of Savings Delivery, offers this advice.
“It’s vital to evaluate these four signs to see if it’s time to move on:
Your current partner isn’t delivering the value you expected and doesn’t fully grasp your needs or priorities.
Your GPO isn’t offering tailored solutions for your business or helping address operational challenges.
You don’t see your GPO as a true extension of your organisation.
Your procurement service lacks innovation, best practices, and strategic guidance on industry trends, challenges, and emerging opportunities. They fail to provide new approaches for improvement and better results.”
After you consider what is most important to your goals, you’ll have a good starting point for exploring how you can use group purchasing most advantageously.
“At Entegra, we want to understand the full scope of your business problems, opportunities and challenges” said DirectorofClient Services, Darren Iley. “This is because we’re a group purchasing organisation that goes beyond cost-savings on food and supplies, we offer solutions that help your business achieve efficiencies across your operations.”
“Entegra brought us savings through better supplier contracts but also introduced robust reporting tools that have streamlined our purchasing and improved decision-making.”
Robert Diaper, Business Development Director | Audley Villages
Entegra vs. Competitor GPOs
Supplier Choice
Where volume warrants, we will contract for what you buy.
We identify cost-saving opportunities, present tailored solutions, and provide benchmarking insights—but the final choice is entirely yours.
Dedicated operation team that helps with navigating food costs, menu optimisation, and waste management.
With £32 billion of buying power, Entegra is the world’s largest food GPO.
Explore options for energy management, recycling, and more.
Procurement that connects you directly with 250+ suppliers across the UK&I, covering a broad range of categories.
Entegra has a global presence in Europe, U.S. and Canada (12 countries served), plus planned expansion into Latin America, Asia, and the Middle East.
Entegra can bring operational efficiencies and performance improvement strategies to areas all across your business.
Entegra brings £32 billion of global purchasing power to the table to negotiate the price of everything from eggs, apples, beef and poultry — to cleaning services, tableware, hotel room furniture, kitchen equipment and so much more. Businesses that work with Entegra can save an average of 10%* on most of the goods and services needed to operate. Entegra is the world’s largest food GPO and the best kept secret for anyone running a successful hospitality-centered or food service business.
The combination of Entegra’s size and strength of offerings, make it a go-to partner for hospitality businesses to remain profitable despite supply shortages, cost increases, and labour and marketplace challenges.
“it’s great to have a company like Entegra to work with. Their support in identifying savings and navigating changing allergen guidelines has been invaluable. “
James Gathercole, Chief Operating Officer,
Crown Golf
Why choose Entegra? Unlock savings, support and success
2,500+ suppliers: Benefit from a global network of distributors covering a broad range of categories.
Tailored support: Work with a seasoned supply chain and procurement professionals to get expert support when you need it.
Advisory services: Get support with menu analysis and optimisation, guidance on food cost management, and effective waste reduction strategies.
Onboarding support: Work with a team that takes the time to understand your organisation’s needs and goals — every step along the way.
“Without Entegra we would not be able to have the breadth of suppliers that we now have, and we would operate blindly in a food world where prices are extremely volatile".
Mathias Cocuron, Area Director of Finance Middle East and Africa |FourSeasons
Read their story
More than a GPO
Streamline your purchasing, improve margins and exceed customer expectations with Entegra.
