A group purchasing organization (or GPO) is an entity that is created to leverage the purchasing volume of a group of businesses to obtain discounts from vendors based on the collective buying volume of the GPO members. This allows small companies, even start-up businesses, to further diversify their supply chains and provide the same level of service of many larger institutions.

GPOs, like Innovatix, receive administrative fees that are paid by the vendors based on purchasing volume. The amount of administrative fees received from each vendor with respect to purchases made by or on behalf of each member is disclosed annually to each member. Under this methodology, members do not pay membership fees to belong to the GPO.