spendmatters
 

May 22, 2012

 

Group Buying Power: History and Solutions Around Public Sector Consortiums (Part 1)

Spend Matters welcomes a guest post from Richard Waugh and Orville Bailey of Equal Level.

A recent Spend Matters Perspective Research report, GPOs and Buying Consortiums Must Be on the Radar for 2011-2012 makes a compelling case for more procurement organizations to consider the benefits of leveraging the aggregated purchasing power and efficiencies these models afford. While the private sector is often the "first mover" in adopting innovative procurement models or new technologies, the use of buying consortiums or cooperatives has been an established business practice for most public sector agencies for some time. Equal Level has partnered with U.S. Communities, the leading national government purchasing cooperative with over 46,000 participating agencies, to launch an on-line Marketplace where these agencies can shop across multiple U.S. Communities' cooperative contracts, easily compare products and pricing, and make efficient and transparent "best value" purchase decisions, saving time and money for their agency, and for US taxpayers.

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The Five Worst Reasons Not to Join a Purchasing Consortium

Spend Matters would like to welcome a guest post from regular Spend Matters contributor Lynn Everard, in light of our recently released paper, GPOs and Buying Consortiums Must Be on the Radar for 2011-2012.

While the economy continues to try to find its legs and most people are focused on what is wrong, there are leaders and innovators busy creating the market and leading companies of the future. At this very moment, people and companies are innovating paradigm-shifting products and services, climbing to the top of their own industries. The procurement leaders of the future are busy too. They are taking stock of their supply base, working with their engineers to tweak product designs so they use less of more expensive raw materials, and they are evaluating new savings and value opportunities. In this challenging environment, procurement leaders are also seeking additional strategic competitive advantage, especially around re-evaluating past decisions, moving toward using the input of new information about commodities, markets and global competition.

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