by Brian Maloney
It’s almost impossible for manufacturers and distributors to keep track of all the locations in the foodservice industry and which Group Purchasing Organization (GPO) each location may/may not belong to today…and that’s hoping each location belongs to just one GPO when it relates to foodservice purchasing.
The issue is so mind boggling at times that whenever the topic comes up, everyone just shakes their heads, agrees that it’s a big problem, and then they move on without even trying to figure out possible solutions.
Here’s a solution . . . .the Foodservice Industry needs One Source that maintains all the GPO’s and which locations link to each one. This One Source would be independent of any distributor, manufacturer, or operator. Anyone in the industry that needs to know location-level information by GPO could go to the One Source and that’s it.
Let’s use an example: Manufacturer A wants to set up a contract with Novation and Premier. The deviated pricing will go through Distributor B. The distributor is handed these new agreements and instead of trying to figure out what locations in their system they should link to these two pricing agreements, the distributor simply pulls this information from the independent One Source of information. The GPOs know they must continue to load their location lists into this One Source. That’s it.
If there are times when a single location is showing up on more than one GPO’s location list, that location is flagged and it won’t funnel into any distributors systems for pricing until the GPOs can agree who owns that location. The One Source company would be responsible for catching these and working with the GPO’s. The way this has to work is that a major distributor or set of distributors and/or manufacturers must agree to this concept and then mandate to the GPOs that they load their location lists into this independent One Source company.
It would work. So what distributors and/or manufacturers are ready to solve this?