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GPOs, brokers, and other third parties can provide a wealth of market intelligence and give you access to pricing or services that are not normally accessible. The basic concept behind these types of organizations is that they receive a small markup (normally paid by their supplier) to bring that supplier new accounts or additional sales.

GPOs normally aggregate volume from several members in order to get lower pricing from suppliers and often provide account management and other enhanced services to those members across multiple categories of spend. Most GPOs are tied to one specific supplier for a particular category of spend. Alternatively, some have multiple suppliers for certain categories.

Brokers are experts in a particular market and can help identify the right supplier for you based on your specific requirements. They typically have relationships with multiple manufacturers and distributors, and some even warehouse and distribute products themselves.

Other third parties, such as manufacturer representatives, are paid to bring sales into organizations that do not have their own dedicated sales teams or organizations that want to supplement their internal sales team with additional resources. These third parties work with one or multiple manufacturers and across one or many types of products or services.

You should consider looking at third‐party options when developing a supplier long list. Pay particular attention to these options if you are unfamiliar with the category in question, lack resources, or if you feel the category adds little value to your organization and you hope to outsource its management.