Abstract
Research background: SMEs often operate in markets where they compete with large companies. A fight for a customer, payment backlogs, problems with debt collection and new branches cause that managers are looking for solutions that will influence positively on the situation of financial companies. Maintaining liquidity and generating income are the primary steps to build a competitive position and a progressive development of enterprises. One of the most popular methods that allows companies to do profitable business and increase their chances for safety is operation within group purchasing organizations. Currently in the Polish market there are many different types of GPOs (Group Purchasing Organizations). The choice of the right one is a chance to improve their financial situation.
 Purpose of the article: The aim of the article is to present an impact of group purchasing organizations on the financial situation of enterprises. In the article the classification of groups is done and there are shown the benefits that commercial enterprises operating in them gain. The article presents some obstacles to join specific group purchasing organizations and difficulties faced by companies operating in them.
 Methods: The studies were carried out on the basis of 60 SMEs. These companies operated in five Polish GPOs. The groups were divided into branch and multi-branch ones. The study period covered the years 2013?2015. In order to analyze the impact of purchasing groups on the financial situation of enterprises, some selected groups of financial ratios were used. A preliminary analysis of financial balance sheets and profit and loss account was conducted.
 Findings & Value added: The analysis showed that the choice of an appropriate group purchasing organization had a large impact on financial situation of companies. Different opportunities can be offered by a branch purchasing group than by the multi-branch one. Research has shown that better results relate to dynamics of revenues, costs, liquidity and profitability that are effects of operation within the branch purchasing groups. The analysis conducted has also showed that functioning within purchasing groups allows to maintain safe financial liquidity, apart from obtaining a low price of purchased goods and materials, and has a positive impact on the effectiveness of managing receivables and short-term liabilities.
Highlights
Small and medium-sized enterprises are forced every day to compete with big corporations about contracting parties
Findings & Value added: The analysis showed that the choice of an appropriate group purchasing organization had a large impact on financial situation of companies
Functioning in multi-branch and branch Group Purchasing Organizations (GPO) increases the financial liquidity of businesses
Summary
Small and medium-sized enterprises are forced every day to compete with big corporations about contracting parties. Competition about a customer is difficult as very often companies, when choosing a supplier, take into account only a price. SMEs acting alone in the market are not able to compete with the big players. They do not have too many options in terms of price reductions, and when buyers choose their supplier, they pay attention to three items: a price, a merchant credit and quality. In Poland price is still the key element in choosing a supplier. There are negotiations that deal with the merchant credit. Quality is often overlooked for the price, but lately it has been noticed that buyers are increasingly starting to take this element into consideration when deciding to choose a supplier
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