Following the dictum that there is strength in numbers, group purchasing organizations (GPOs) use that extra muscle to help them buy anything from raw materials to office supplies. However, having the backing of an already established group can certainly help the cause.
That's what the American Hardware Manufacturers Association (AHMA), a trade association in the hardware and home improvement industry, had in mind when it launched its own GPO called "Advantage." The new buying consortium is designed to increase the profitability of the association's members, which include such household names as Moen, Behr and Stanley Works.
"The focus on profitability has increasingly shifted to taking cost out of operations," says Timothy Farrell, AHMA president and CEO. "This program can significantly and positively improve a company's ability to do so."
Powered by Prime Advantage, a buying consortium targeted at small and midsized manufacturers, the GPO gives members the ability to take advantage of the buying power of more than 450 companies to leverage pricing on items from more than 110 endorsed suppliers.
In addition to AHMA members, other industry manufacturers, wholesalers, retailers, etc., are encouraged to join. In fact, any company or organization in the hardware/home improvement industry can become a member of Advantage GPO and receive significant discounts and rebates.
"We know that the top economic concerns for manufacturers are costs for raw materials, MRO, shipping and energy costs. This is a way to mitigate those concerns," says Farrell. "This GPO will provide real savings to help our members gain a competitive advantage in the ever-increasing global marketplace."