A custom contract could be an excellent fit for you and your organization and you may not even know it.

But how do we define a custom contract? When a group purchasing organization (GPO) works on behalf of a member to establish an agreement with a particular supplier to meet a specific need of that member, the agreement can be defined as a custom contract.

Even that may sound confusing, so, let’s back up. If you’re new to the idea of using a GPO, or you’ve never heard of the term, a GPO has many benefits that center around cost savings.

Through the purchasing power of its members, a GPO can help connect you and your organization to contracts that offer savings that would otherwise be unavailable to you. This means when you’re a member of a GPO, you will have access to a portfolio of contracts that will allow you to save money on products and services you use every day.

CHAMPS members receive 10-20% savings on average and aren’t required to pay any annual fees or a cost to join. This allows members to focus more on their core business instead of worrying about negotiating contracts for products and services their organization needs.

What does a supplier get in return for being a part of a GPO? When a supplier joins a GPO, they become part of the portfolio of purchasing agreements that are promoted by the GPO to their members. By gaining exposure to the GPO membership, suppliers can grow their client base and expand their reach.

Suppliers benefit from a GPO’s diverse membership. Working collaboratively with account managers that specialize in specific classes of trade, suppliers are connected to members best fit for their contracts.

How CHAMPS Creates Custom Contracts

CHAMPS’ account managers monitor the portfolio and help members make informed purchasing decisions by implementing connections with manufacturers and distributors, and managing contract renewals. CHAMPS can also work closely with individual members to analyze their purchasing needs and develop custom contracts with suppliers that are not already in the portfolio.

Over the last two years, CHAMPS has been working with a large health system in Northeast Ohio to create custom contracts. To date, CHAMPS has successfully secured 35 custom agreements for that member. Many of these contracts are with local suppliers, and a number of them are with suppliers that hold a diversity classification, helping this member meet its goals of investing in the local economy and supporting diverse businesses.

• 68% (24 contracts) are Ohio-based suppliers.
• Of the 24 Ohio-based suppliers, 66% (16 contracts) are specifically in Cuyahoga County.
• Of the 35 contracts CHAMPS has written for them, 30% hold a verified diversity classification.
• Of the contracts that hold diversity classifications, seven of them are in the state of Ohio, and five of those seven are in Cuyahoga County.
• The categories of spend CHAMPS is able to support with these agreements include: Facilities, Support Services, Pharmacy, Foodservice, Lab, and Operating Rooms.

This member has saved millions of dollars over the last two years through these customized purchasing agreements.

 A GPO custom contract truly streamlines your purchasing and removes the time and stress of the bid process. And once a custom contract is created, our other members then have the option to access the contract and use it for themselves.

In the end, we don’t change the way you do business, we just make it easier by managing the supplier contracting process, all while helping your organization save. 

Learn more about CHAMPS GPO by visiting champsgpo.org.