The print supplier that wants to develop the GPO into a profitable secondary market – one that fills production gaps that occur with commercial work downtime – needs to establish two partnerships. The obvious one is with the GPO. Less obvious, but no less important, is the one with a full-service GPO bid services firm. GPO is the partner that awards the work. The bid services firm is the one that helps you win it.
Once a printer starts winning GPO work consistently, it can expect to increase its profitability from an industry average of 2%, before GPO work, to 14% or more afterwards. Production utilization will increase from a print industry average of 70% to full utilization of 90% to 95%. Those percentages are based on a printer using proven tools and services developed for printers seeking GPO work, identifying open production capacity and discounting prices to fill non-productive, non-revenue generating schedule openings.