What is a GPO and how does Tamarack create value in the mining industry?
What is a GPO?
All buyers know that purchasing big volumes yields big discounts, and that big operators are benefitting from savings not available to small and mid market buyers. Levelling this purchasing power is the mission of a GPO – it is a membership based organization that pools its members purchasing power to unlock those valuable volume discounts.
Why Group Purchasing?
A GPO elevates the buying power of every member. You can access the savings that large buyers receive, allowing you to lower your AISC by reducing your direct and indirect spend. That is what large volume producers do. As more members join, so does the overall spend, and your GPO can negotiate even deeper discounts and better conditions with suppliers.
What can I get from a GPO?
Tamarack touches on all facets of your spending, from explosives to fuel, ground support to cyanide, and even services to PPE.
How GPOs fit into a mining procurement strategy
A GPO in the mining industry needs to know the sector inside and out. After all, your purchasing is complex and has some unique requirements – adherence to ESG goals and IBAs, for instance. That’s not a problem for a GPO that knows the mining sector as well as Tamarack does. We are serving your interests and meeting your requirements as we negotiate each and every contract. Save money and have the backbone of your operations protected at the same time.
What happens after you join a GPO?
We all get by with a little help from our friends, and a GPO will walk you through the process, from set-up straight to savings.
After you sign up with a GPO through a membership agreement, just share your spend data and we will deliver contracts that save money to your door.
The core value of a GPO is to deliver savings that can’t be achieved by independent buyers alone. We know that you’re already maximizing the savings in your spend, but by using a GPO to access bulk pricing you can go above and beyond and expect savings between 10-25%.
In some cases we will have contracts ready made that offer savings – just sign up for immediate value.
In other situations you may need help finding a procurement solution, and troubleshooting is our middle name. A GPO is up to any procurement challenge and will work with you to find a great outcome.
The GPO and Member Relationship
A GPO does not replace your procurement or supply chain - it enhances your supply chain, offering contract savings that can’t be obtained alone. The job of a GPO is to provide savings right out of the gate, and then to continue to add value as we keep contract prices in check. Moreover, we can help with procurement challenges that need a little more tending to. Simply drop us a line and let us problem solve for you.
Above and Beyond Value: Saved Time and Effort
Working with a GPO saves you money on your direct and indirect spend, period. Beyond that, there are the savings of time and effort. Your organization has more time to spend on the bigger issues, with savings accruing all the while.
Are there other advantages?
Absolutely. In addition to lowering your AISC, working with a GPO streamlines aspects of your procurement process. We are partners in your supply chain solution and can guide you to easy-to-access and savings filled contracts. The time between becoming a member and identifying the right contracts for your needs is short, and Tamarack will walk you all the way through the process.