We do a lot of work in this area helping companies “on-ramp” onto GPO contracts (sometimes contracts from one of the big GPOs like Novation/Provista, sometimes ones we have developed ourselves for our clients) and have absolutely found that a holistic sourcing approach is needed to ensure that the contracts meet the quality and service needs of the company. If this is done, however, the GPO path can indeed be a rewarding one. The company considering utilizing the contracts of a GPO should form an internal cross-functional team (and enlist the help of an sourcing consultant with expertise in GPOs if necessary) to ensure that the GPO contract(s) in question meet all of its unique requirements, including customizing metrics and SLAs if necessary. Treat it like an accelerated strategic sourcing exercise if you will but one with a pre-selected pre-qualified supplier. If these steps are taken we have found that GPOs can absolutely be the right option for a company that doesn’t want to go through a 4-6 month RFP exercise for a non-strategic commodity, particularly if it’s own leverage in the market is weak. The key is not to check your basic total sourcing principles at the door but to to apply cross-functionally driven total cost of ownership decisions to the GPO contract selection process.