Using Group Purchasing Organizations
By: Rick Emmelhainz

Ever wonder why your budget ends before your month? Does it always feel like your school is spending too much on supplies? You're not alone.

It's not uncommon for schools to spend more than 50 percent of their monthly operating budget (minus salaries and overhead) on supplies such as copy paper, toner and the like. Do you want to spend less on these? If so, then read on!

Thirty years ago, hospitals had the same cost dilemma you may be facing--only their problem was hospital supplies. Someone had the wise idea that if they were able to bring the purchasing power of 10 or 100 hospitals together, then they could begin to demand better pricing and keep their expenses down.

What evolved from this concept was purchasing groups, which are now referred to as group purchasing organizations or GPOs. According to a recent article on hospital group purchasing organizations at PRzoom.com, currently hospital GPOs negotiate "almost 75 to 85 percent of all medical and surgical supply revenue by representing nearly 96 to 98 percent of the hospitals in the United States ." Needless to say, hospitals have found great value in grouping their unique supply purchases together.

From hospital-specific supplies, this idea spread to other areas such as cleaning supplies, phone service, electrical usage, and office supplies. Group purchasing organizations now negotiate prices for groups as diverse as city governments, architects and attorneys.

The GPO concept has just recently made its appearance in the school market and could prove to be a real plus for Christian schools working under significant budget restraints.

The Dark Ages
To better understand the growth of GPOs in private schools, let's take a glimpse into the past.

As recently as five years ago, most private schools depended heavily on acquiring office and school supplies from school dealers that offered a broad range of products meant for schools. In addition to desks, chairs, physical education equipment and microscopes, these organizations would offer copy paper as a convenience to the customer, saving time and energy locating another source.

Generally, prices for these supplies were somewhat inflated, as convenience was the goal, not savings. With tightening school budgets, savings were sought everywhere possible and large discount stores became an attractive alternative to local suppliers--and usually resulted in significant savings.

Just as with hospitals decades earlier, group purchasing organizations formed that focus on the school market to further drive prices down by negotiating contracts with these large discount stores on behalf of schools, both in the public as well as the private sector.

How can GPOs help your school?

Be a Member - and Save!
First, how does a GPO work?

Most GPOs are membership driven. This means that you first need to pay some form of a membership fee to belong and, therefore, take advantage of their low costs. This is usually an annual fee that may be based upon organization size, annual budget or number of services offered by the organization. Many GPOs have more than office supplies to offer, and, depending on your needs, many services and products may or may not be applicable to your organization. Why have negotiated pricing on refuse collection when the city provides this as a service?

Do GPOs survive on their membership fees alone? Most likely, they don't. In addition to the fee, these organizations are usually set up with a rebate that they receive from the vendor. According to experts in the office supply industry, these generally represent 3 to 4 percent of the purchases made by members and can run as high as 10 percent depending on the contract that the GPO has negotiated with the supplier.

Buyer Beware!
How do you know what is an appropriate and reputable GPO? Bob Sickles, vice principal in charge of purchasing for St. Vincent de Paul Catholic School in Denver , says that you need to choose a Group Purchasing Organization that specializes in your specific needs and don't waste membership fees on services that aren't applicable. Knowing that his school uses primarily classroom and office supplies, it doesn't make sense that the best prices should be provided on, say, mailing supplies rather than construction paper and copy paper.

Ask to see their list of suppliers and compare it to who you currently use. If membership means drastic changes in what or where you purchase, you may need to look further.

Membership Costs
Also at issue may be the cost of membership compared to the savings. If the membership fee is, say, $100 per year and your organization typically spends only $1,000 on supplies, the chance of recouping your membership fee through the contract pricing means that you must get at least an additional 10 percent of savings just to break even.

Pricing Contract
Check the structure of the pricing program offered. According to office supply industry experts, most programs negotiate excellent discounts on roughly 200 high-use items, offering them at or below cost to lure in prospective members. In order to protect their rebate, however, they may inflate prices on other items above what is the industry standard for that product. Be sure to request pricing comparisons on your high-use items. You don't want to be surprised when you pay significantly more on an item because it wasn't one of the GPO's competitive items.

Credibility
As with any prospective supplier, check the credentials and services of the GPO. How long have they been in existence? Do they have member references that you can call to determine how "user friendly" they are?

Sickles says that one of the advantages often sacrificed for better prices is personal service from local suppliers. He says to make certain that representatives of GPO will be available to work through problems, not just set up the school and let them go.

Accessibility
One service that Sickles feels has been highly helpful is online ordering. Sickles appreciated the extra effort his GPO offered to get his organization "up and going" placing and tracking orders online. According to Sickles, this has been a huge time savings to St. Vincent 's as well as an easy way to keep his teachers in budget well ahead of receiving the bills.

Guarantees
Sickles also recommends that a school should not "let their guard down" on pricing. Check to see how long the contracted prices are guaranteed. With the high cost of raw goods and transportation, most office suppliers are hard pressed to guarantee any pricing beyond a few months.

If the GPO guarantees pricing beyond this, they may be a questionable organization. Likewise, if they offer no guarantee, this may mean they will pull a "bait and switch," raising prices without notification. Be sure a copy of their pricing and contract program is reviewed before making a commitment.

The Right Program for You - If Any!
Now that you have some background on GPOs, what is right for your organization? Or, are GPOs even the way you should go?

Begin the process by asking these basic questions of your school:

1. Do we feel that our current system of purchasing is inadequate in the areas of price, service and convenience?
2. Would the services offered by a GPO improve our overall purchasing process, saving us time, money and aggravation?
3. Is our school large enough to benefit from the services of a GPO after committing to an annual fee?
4. Is our school so large that we are able to command similar pricing on the majority of our purchases without the constraints of a GPO?

If you've answered yes to the first three questions, start the process by researching GPOs on the Internet. Keep in mind that not all GPOs offer the right product and service mix that matches the needs of Christian schools. Many, however, focus their needs on Christian organizations and, therefore, often match philosophically with Christian schools in supplier and pricing choices.

If you feel that your answer to question four is probably yes, you should begin your research with cost comparisons. Office supply experts have found that large organizations are often able to negotiate pricing that is the same or even better than that of many GPOs. This is due to the fact that large schools do not need to protect a percentage rebate that is returned to the GPO, and their buying volume is large enough to demand excellent prices.

"Above all," Bob Sickles emphasizes, "don't be drawn into promises made by GPOs that ultimately bind your purchasing options on the promise of better prices. Vendor relationships and conveniences such as online ordering ultimately save time and aggravations that can easily exceed the benefits of saving a few cents on paper clips. Choose your partners wisely!"

Rick Emmelhainz is co-owner of ChurchPartner Resource and Distribution Service, www.churchpartner.com , a business founded as a ministry to Christian organizations in the area of purchasing.

Product Roundup

Optimail 30 from FP Mailing Solutions
FP Mailing Solutions, a world-class mailroom solutions provider, has introduced the newest member of its high-speed digital postage meter family: the Optimail 30. The Optimail 30 is a semi-automatic, IBIP compliant digital postage meter that processes 32 pieces per minute. In addition to its compact physical size, this desk-top unit offers an original, back-lit display with soft keys for ease of use. The Optimail 30 features a letter-catch tray to organize and stack mail, as well as FP's unique account administration function that registers and evaluates postage for nine separate accounts. It allows users to securely download an exact dollar amount of postage needed directly into the meter. The Optimail 30 features a seven-pound integrated scale and moistener and can be upgraded to accommodate up to a 150-pound FP Mailing Solutions scale, if needed.
www.fp-usa.com

MZ790 Printer-Duplicator from Riso
RISO, Inc. recently unveiled its newest product, the MZ790 Printer-Duplicator.  Engineered to provide speed, versatility, high-quality output and outstanding ease of use, the MZ790 gives users a choice between printing in a single color or adding the power and immediacy of a second color, all in a single compact machine. RISO's advanced technology makes color separation, master-making and two-color printing easier than ever before. With RISO's new Easy 2 Color process, the MZ790 eliminates the need to prepare separate originals for each color. Now users can easily print in two colors with just one original. Master-making takes just seconds for either one- or two-color jobs, so jobs are ready to start printing in less than one minute. 
www.riso.com

AR-M355/AR-M455 by Sharp
Sharp's new sophisticated workgroup MFPs offer the most advanced multitasking capabilities in their category. Both models feature a fast 300 MHz multitasking controller with a 40 GB hard drive to help even the busiest workgroups manage document workflow and process jobs faster. These new models also come equipped with Sharp's Scan2 technology, which scans two-sided documents in a single pass.
www.sharpusa.com

NOVA
In addition to many classroom desks for students, NOVA provides a full line of furniture for staff and administrative offices. NOVA's multimedia lecterns are available with patented technology that recesses the computer display beneath the work surface. Instructors view their computer screen through a glass view port that creates an uninterrupted, multi-use work surface. "Cut-outs" can accommodate overhead projectors. Standard multimedia units include adjustable shelves, locking doors, lateral file drawer, a pull-out keyboard drawer, wire management, grommets and Total Access removable modesty for easier networking and hardware maintenance. Multimedia units for Digital Presenters include all of the above plus a full extension drawer and drop leaf shelf. Desktops can be ordered with a 10-degree slant if desired.
www.novadesk.com

Balt Role Model AV Cart
The Balt Role Model AV Cart features pneumatic shelves that adjust from 34 to 44 inches in height. A lift lid has cut-outs for routing cables and electrical elements. A stationary top shelf holds LCD projectors and houses electrical surge protectors and cords, while a pull out keyboard shelf works well with laptops. Two additional shelves are stationary for equipment storage when the unit is locked. The lift lid and hinged front door lock when closed to secure equipment. A side magnet holds the door to open position when unit is in use. A cut out in the back lower panel and a swing door allow for ventilation and cable routing. The unit comes with a black laminate frame and three-inch casters for mobility.
www.baltinc.com

Xerox Free Color Printers Program
Xerox Corporation offers free color printers to qualified businesses and organizations nationwide through the Xerox Free Color Printers Program. Members receive a Xerox Phaser 8550 solid ink color printer, online and toll-free telephone support, online ordering of supplies and access to a members-only Web site featuring valuable tools and templates. Thousands of churches and schools already have qualified to receive a free networked, color printer through this program and are seeing the advantages of brilliant color printing. These organizations can now produce high-quality programs, mailers and other communication materials at a fraction of what it might cost to outsource the printing. The Xerox Phaser 8550 solid ink color printer delivers industry-leading speed, print quality, flexibility and ease-of-use to organizations of all sizes. Xerox's solid ink technology is an alternative to laser printing that delivers professional output with color that is truer, more saturated and consistent on virtually any printing surface.
www.freecolorprinters.com

Office Designs by Smith Carrel
These unique, patented-design workstations add an attractive and functional element to any office workspace. The carrels may be used alone or connected in as many ways as users need for training rooms or work groups. The model 1800 has a 42-inch work surface, while the model 1900 has a 36-inch surface, perfect in smaller spaces. The 42-inch-high side panels reduce distractions and provide a sense of personal space while allowing the user to remain open to others. Desks feature one-inch laminate panels with rounded edges and corners with powder-coated steel cable management systems. Shown is the model 1900 starter with the 1901 adder.
www.smithcarrel.com

PantoMove by VS America
The PantoMove task chair has an aluminum five-star foot base and a gas spring for height adjustability. The double-walled polypropylene seat shell is ergonomically shaped, offering an air-cushion effect for comfortable sitting. Two different sizes of seat shells with different ranges of height adjustability are available, with glides and castors for hard and soft floors. The chair is designed to encourage movement, rather than to restrict it. Its ergonomic function allows the user's spinal discs, muscles and ligaments to recover and relax while sitting. The PantoMove chair is available in a basic model with a fixed seat shell, a 2-D model with forward- backward movement and a 3-D model, which also includes a sideward mechanism.
www.vs-furniture.com

High-Speed Printers from Hasler
Hasler has introduced two high-speed, mid-production address printers to its line of easy-to-use mailing equipment. The HJ3600P and HJ3800P are rugged, high-volume printers with processing speeds of up to 26,000 envelopes per hour, offering superior print quality for text, graphics and bar coding. These address printers are ideal for any organization having to address large numbers of mail on a regular basis. The new HJ3600P and HJ3800P address printers are true PCL Windows(TM) printers, providing outstanding performance on any Windows platform and interacting smoothly with all USPS(R) approved list management software. This means no exporting and importing of files into other applications, and the ability to save time and reduce costs by printing directly to the printer.
www.haslerinc.com

DP-460H from Duplo
Duplo has introduced the world's first and only air-fed duplicator, the DP-460H. The revolutionary vacuum-feed system of this digital printing system reduces markings caused by conventional feed rollers and can handle a wide variety of paper stocks and sizes. Two separate fans ensure accurate and consistent feeding, quickly making image shift a problem of the past. This versatile new printing machine offers a cost-effective, alternative solution to short run offset printing, providing single and spot color at 600x600 dpi resolution, perfect for the commercial print market. The DP-460H upholds immaculate registration crucial for spot color, NCR, and envelope printing. It has the industry's only feed and stack capacity of 3,000 sheets.
www.duplousa.com

BioFit Ergonomic Office Chair
BioFit Engineered Products offers the AVOC1 ergonomic office chair for supportive comfort, easy adjustability and durability. The 20-inch-wide, 30-inch-high contoured backrest wraps around the user's back to provide lumbar and kidney support. A built-in headrest supports the base of the neck. The saddle-shaped seat is contoured for comfort and has a waterfall front for improved circulation. The seat is a generous 21 inches wide by 19 inches deep by 3 inches thick. The chair features an executive tilt control that enables the seated individual to adjust seat and backrest height and tilt, control tilt tension and lock seat tilt. Height-adjustable armrests provide added support that can reduce the shoulder, back and neck strain of prolonged seated work.
www.biofit.com