If you’ve ever wondered whether it’s better to buy supplies directly from vendors or through a Group Purchasing Organization (GPO), you’re not alone. Many businesses assume buying direct gives them the best possible pricing — but in reality, that’s rarely the case.
The truth is this:
Unless your purchasing volume is massive, buying direct almost always costs you more.
In this blog post, we’ll break down the difference between buying direct and using a GPO like Buygility, so you can make smarter, more informed decisions about your organization’s spending.
What it means to buy direct
Buying direct means your organization negotiates and purchases goods or services straight from a supplier — without any third-party support or pricing leverage.
Pros of buying direct
- You choose your own suppliers
- You may negotiate custom terms (if your volume is high)
- You control every part of the purchasing process
Cons of buying direct
- Higher pricing due to limited buying power
- Time-consuming research, bidding, and negotiation
- Inconsistent pricing across categories
- Limited supply chain protection
- No dedicated support or benchmarking tools
- No access to national volume discounts
For most small and mid-sized organizations, buying direct means paying retail or near-retail pricing, even for high-volume necessities like office supplies, cleaning products, medical supplies, or technology.
How a GPO works differently
A Group Purchasing Organization negotiates pricing on behalf of its entire membership. That means suppliers offer lower rates because they’re competing for thousands of potential buyers, not just one.
With Buygility — powered by Premier’s $84 billion purchasing volume — members gain access to:
- Pre-negotiated national contracts
- Lower costs across hundreds of categories
- No membership fees
- No minimum purchasing requirements
- Better supplier terms and support
You still buy from the same trusted suppliers — but at pricing normally reserved for the largest organizations in the country.
Why buying direct often costs you more
1. You’re negotiating alone
If a supplier knows you only purchase small or moderate quantities, they have little incentive to offer deep discounts.
2. You don’t receive volume-based pricing
GPOs aggregate demand across thousands of members, unlocking price tiers you could never reach independently.
3. You spend more time managing vendors
Procurement takes time — and time is money. A GPO eliminates the need for lengthy bidding and negotiation cycles.
4. You have limited supply chain protection
Buying direct means you rely heavily on one supplier. A GPO gives you multiple backup options when shortages happen.
5. You miss out on added-value services
Buygility members gain access to:
- Supply Chain Advisor®
- Group Buy and EXPRESSbuy™ events
- Employee Discount Program
- Hands-on support for contract activation
- Insights and tools to optimize spending
Suppliers simply don’t provide these perks to individual buyers.
Why GPO savings are so significant
Most organizations save 6–13% or more on products and services they purchase every day.
These savings apply across hundreds of categories, such as:
- Office supplies
- MRO & facilities
- IT & telecom
- Medical supplies
- Foodservice
- Professional services
- Uniforms & workwear
- Pharmaceuticals
- And more
For many organizations, the savings are so substantial that GPO membership pays for itself many times over — even though Buygility is free.
So which is better: GPO or buying direct?
For 99% of organizations, the answer is clear:
👉 A GPO delivers better pricing, less administrative work, and stronger supply stability — at no cost.
Buying direct is only beneficial if your purchasing volume is massive or you require highly specialized custom contracts. For everyone else, GPO membership is the smarter, more cost-efficient model.
