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What is a GPO?  

A GPO, or group purchasing organization, is an entity created to leverage the purchasing power of a group of businesses in order to obtain discounts from suppliers based on the collective buying power of its members.  In other words, it helps its members realize savings on scores of different products and supplies by aggregating member purchasing power.


The healthcare industry has leveraged GPOs to great effect. In fact, “a recent analysis of Medicare claims data by healthcare economists found that GPOs reduced healthcare costs by up to $55 billion annually, and up to $864 billion over 10 years[,] [and] [f]ormer Federal Trade Commission Chairman Jon Leibowitz recently analyzed the GPO market and found that hospitals save 10% to 18% by buying through GPOs.”


However, many other industry sectors have also embraced GPOs. Among them are foodservice and grocery; industrial manufacturing, especially manufacturers purchasing raw materials; and farming.  It is for that reason we believe that the cannabis industry is uniquely suited to realize the benefits of a GPO.


How does a GPO Benefit its Members? 

GPOs save members money by providing access to better contractual terms with suppliers, as well as cost reduction through standardization.


GPOs save members time by performing the “sourcing” process so members do not have to do so.


GPOs improve compliance by providing an infrastructure for establishing industry-wide standards, as well as giving its members access to a wide range of industry specialists.

GPOs ensure accuracy, consistency and transparency in pricing.


GPOs lower purchasing risks and improve overall quality of products and services.

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How does a GPO Typically Work? 

The GPO creates a membership base comprised of companies seeking to channel their purchasing power to certain areas through contracts sourced by the GPO.  In this case, the membership base is you, and the contracts sourced by the GPO would include anything that you need for your business, from office supplies to seed-to-sale systems, and everything in between.

The GPO uses its membership base's combined purchasing power to obtain contracts with suppliers on terms better than what the member companies could achieve on their own.

The GPO manages the supplier contracts, and as more members join and utilize the supplier contracts, the GPO negotiates better terms with the suppliers.  The GPO’s mission is to take the power from the vendors and put dollars back in its members’ pockets.


A GPO is typically funded by membership fees, administrative fees, or a combination of the two.  Membership fees are typically flat fees paid by the members, and administrative fees are typically a percentage of the purchases made through the contracts sourced by the GPO.  Regardless of how it is funded, GPO members have full transparency regarding how the GPO is funded.

Who is Lifted Logix?

"We are a tech-based GPO for the cannabis industry and work with all commercial licensees, including growers, processors, dispensaries, transporters, waste disposers, and laboratories to save them money.  To our knowledge, we are the only cannabis-focused GPO in the United States who is contracted with suppliers that can service all of the needs of every commercial licensee, and we are the only GPO who was founded by cannabis industry "operators," Silicon Valley-based software engineers, and regulatory compliance attorneys.  In fact, our management team has operated successful grows and processors in Oklahoma, built one of the first mental health-focused GPOs in the United States, developed informatics systems based on machine learning methods, and architected compliance programs for numerous large healthcare organizations in the hospital and laboratory sectors of healthcare, two of the most highly regulated environments in the United States."

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