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Purchasing cooperation: definition & important aspects for buyers
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What is purchasing cooperation?
A purchasing cooperation is a strategic alliance of several independent companies that jointly procure goods or services. By pooling their purchasing volumes, the partners can establish a stronger negotiating position with suppliers and thus achieve better conditions such as volume discounts or optimized logistics costs. This form of cooperation enables small and medium-sized companies in particular to take advantage of cost benefits that they could not achieve on their own.
Contents
Purchasing cooperation: definition and basics
The special feature of a purchasing cooperation lies in its flexibility and diversity: it can range from a loose bundling of requirements for individual product groups to an in-depth strategic partnership with shared processes and standards. Partners in a purchasing cooperation benefit not only from direct price advantages, but also from the mutual exchange of experience, the sharing of best practices and extended market and supplier access. The participating companies remain legally and economically independent, but pool their purchasing power where it is advantageous for all parties involved.
A key success factor is striking the right balance between cooperation and independence: the partners must be willing to share information and harmonize processes, but retain full control over their individual business decisions. Modern digital platforms and standardized processes enable efficient coordination of joint procurement activities, while clear agreements structure the collaboration and minimize potential conflicts of interest.
Example of purchasing cooperation: savings and strategic advantages for 2 companies from the same sector
Two medium-sized manufacturers of plastic components for the automotive industry (180 and 220 employees) developed a purchasing cooperation for technical plastic granulates in 2023. Both companies realized that they processed similar materials, but individually did not reach the critical size to obtain optimal conditions from the large plastics manufacturers.
Initial situation and prerequisites for cooperation:
- Geographical proximity (75 km distance) enabled efficient logistics
- No direct competition due to different customer portfolios (interior vs. engine compartment)
- Overlap with 4 main materials (PA6.6, PA6.6-GF30, PP-GF30, PBT-GF30)
- Similar quality requirements due to automotive standards
- Compatible ERP systems for demand planning
Quantitative successes of the cooperation:
- Increase in joint annual volume to 3,800 tons (KTS: 1,600 tons, AutoPolymer: 2,200 tons)
- Average price reduction of 12% due to improved negotiating position
- Reduction of minimum order quantities by 40% due to higher total purchase volume
- 15% reduction in warehousing costs thanks to coordinated orders
- Reduction in emergency deliveries by 85% through mutual assistance
Additional strategic advantages:
- Prioritization in the event of material shortages due to higher total volume
- Access to premium supplier service through A-customer status
- Joint market analyses and improved price monitoring
- Reduction of qualification costs for new materials by 50%
- Establishment of a joint emergency reserve for critical materials
Success factors for cooperation:
- Clear contractual regulations on volume distribution and pricing
- Monthly coordination meetings of the purchasing managers
- Transparent requirements planning through standardized processes
- Defined escalation paths in the event of bottlenecks
- Joint quality management for material releases
The total annual savings amounted to €840,000, of which around 65% was attributable to direct material cost savings and 35% to process and logistics optimizations. The initial coordination costs of around €120,000 for process adjustments and IT integration were already amortized after the first quarter.
The success of this cooperation has led both companies to expand their collaboration to other areas such as operating resources and packaging materials and to include a third partner in the cooperation.
Example of purchasing cooperation: Successful cooperation in purchasing, even between companies from different sectors
A medical technology company (250 employees) and a laboratory equipment supplier (190 employees) established a purchasing cooperation for stainless steel components and precision electronics in 2023, even though they operate in different market segments. Both companies recognized that they had similar quality requirements and material specifications despite having different end products.
Initial situation and prerequisites for cooperation:
- Both companies are subject to strict quality and documentation requirements
- Overlap in stainless steel components (1.4404 and 1.4571) and control electronics
- No competitive situation due to different target markets
- Similar corporate values and quality philosophy
- Complementary expertise in supplier management and quality assurance
Quantitative successes of the cooperation:
- Joint purchasing volume of € 12.5 million for stainless steel components
- Price reduction of 15% for electronic components through bundled requirements
- Reduction of qualification costs for suppliers by 60% through shared audits
- Procurement times reduced by 35% thanks to improved supplier relationships
- Joint warehousing reduced logistics costs by 22
Additional strategic advantages:
- Mutual transfer of expertise in quality assurance and regulation
- Access to new, specialized suppliers through network expansion
- Improved negotiating position with global electronics manufacturers
- Joint development of quality standards for suppliers
- Risk minimization through shared market observation
Success factors for cooperation:
- Structured communication through weekly video calls
- Clear demarcation of the areas of cooperation
- Joint supplier portal for order processing
- Standardized processes for quality assurance
- Fair distribution of expenses and savings
The total annual savings amounted to €1.2 million, with the greatest leverage lying in joint quality assurance and supplier development. The initial investment of €180,000 for process harmonization and IT integration paid for itself after just 6 months.
The exchange of best practices proved to be particularly valuable: MediTech benefited from LabEquip's expertise in electronics procurement, while LabEquip learned from MediTech's experience in the regulatory environment. This cross-industry cooperation shows that it is not industry affiliation but similar quality requirements and complementary strengths that are decisive for successful purchasing cooperation.
Success factors for a purchasing cooperation
Basic requirements:
- No direct competition
- Similar quality requirements and standards
- Commitment of the management level
Organizational factors:
- Established communication structures and escalation channels
- Standardized processes for order processing
- Transparent requirements planning and reporting
Technical factors:
- Compatible or integrable IT systems
- Similar technical specifications for procured goods
- Harmonized quality assurance processes
- Efficient logistics solutions
Strategic factors:
- Long-term commitment to cooperation
- Complementary strengths and experience
- Willingness to share knowledge
- Sufficient total volume for negotiating power
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. However, in an increasingly globalized and competitive economy, it is crucial to pool resources and leverage synergies. synergy effects synergy effects. Purchasing cooperations offer a practical approach to realizing advantages and increasing competitiveness through joint purchasing activities.
Traditional approach: individual purchasing
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
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 utilized, 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.
Conclusion on the purchasing cooperation
Purchasing cooperations are proving to be a powerful strategic instrument that enables medium-sized companies in particular to strengthen their market position and realize cost benefits that would otherwise only be available to larger companies. Success is not based solely on the pure bundling of purchasing volumes, but is the result of an intelligent combination of standardized processes, mutual know-how transfer and trusting cooperation on an equal footing. While the immediate cost benefits are often the first incentive for cooperation, successful examples show that the long-term added value lies primarily in the joint development of standards, the exchange of best practices and risk minimization. Increasing digitalization and rising cost pressure will make purchasing cooperations even more important, whereby the key to success lies in the careful selection of partners and professional, structured cooperation.
