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Purchasing cooperation: definition & important aspects for buyers
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Purchasing cooperation in a nutshell:
A purchasing cooperation is the systematic merger of several legally independent companies for the joint procurement of goods or services. By pooling purchasing volumes, the partners involved can strengthen their negotiating position and obtain better conditions from suppliers.
Example: Three medium-sized mechanical engineering companies join forces to form a purchasing cooperation for steel products and achieve an additional volume discount of 7% compared to their previous individual conditions thanks to their combined annual volume of EUR 5 million.
Contents
What is a purchasing cooperation?
A purchasing cooperation is an association of companies or organizations that jointly organize their procurement in order to obtain better conditions from suppliers. By pooling purchasing volumes, the members increase their negotiating power, receive volume discounts in purchasing and can save costs. The aim of the purchasing cooperation is to create competitive advantages that would be difficult for each member to achieve alone.
Core elements of a purchasing cooperation
Importance of purchasing cooperation in procurement
Purchasing cooperation offers considerable advantages in the area of purchasing. It enables companies, especially small and medium-sized enterprises, to benefit from economies of scale and strengthen their market position. Through cooperation, risks can be reduced and innovations implemented more quickly. Purchasing cooperations also promote competition between suppliers, which leads to better offers and improved services.
Purchasing cooperation: from individual purchasing to strategic cooperation
Individual purchasing behavior has always dominated the procurement process of many companies. Each company negotiates alone with its suppliers, which often leads to higher prices and less negotiating power. In an increasingly globalized and competitive economy, however, it is crucial to pool resources and exploit synergy effects. Purchasing cooperations offer a practical approach to realizing advantages and increasing competitiveness through joint purchasing activities.
Old: Individual purchasing
Traditional approach:
In the traditional purchasing process, companies act in isolation and conduct independent negotiations with their suppliers. Due to the limited purchasing volume, they have a weaker negotiating position, which often leads to higher prices and less advantageous conditions. The processes are usually manual and time-consuming, with a high administrative burden. A lack of market transparency and the inadequate exchange of information with other companies also limit the opportunities to benefit from market changes or new trends.
New: Purchasing cooperation
Purchasing Cooperation:
Modern purchasing cooperation relies on strategic collaboration between several companies in order to achieve better purchasing conditions together. By bundling requirements, the purchasing volume increases significantly, which strengthens the negotiating position with suppliers and leads to more favorable prices and better conditions. Digital platforms and technologies enable an efficient exchange of information and coordinated procurement processes. Innovation potential is jointly identified and exploited, and risk management can be minimized through joint risk management. This cooperative approach leads to cost savings, increased efficiency and strengthens the market position of the companies involved.
Practical example: Retail purchasing association
An association of ten independent retailers founded a purchasing cooperation to jointly procure goods. By pooling their orders, they were able to negotiate volume discounts of up to 20%. In addition, joint storage and logistics costs a 15% reduction in delivery costs. The increased purchasing power also meant that exclusive products could be added to the range, which in turn led to a 10% increase in sales in the first year of the cooperation.
Conclusion on the purchasing cooperation
Purchasing cooperations offer companies an effective way to reduce their procurement costs and strengthen their market position. Success depends largely on careful partner selection, clear contractual regulations and standardized processes. Despite challenges such as coordination effort and potential conflicts of interest, the benefits of cost savings, improved delivery conditions and knowledge sharing outweigh the disadvantages. Increasing digitalization will create new opportunities for even more efficient cooperation models.
