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In this example, it wouldn’t make sense for each of the six organizations to go through the procurement process for the vans such as supplier discovery and selection. Working alone, the organization has to pay the suppliers’ full price for the vans because they simply can’t purchase enough units to activate any sort of discount.īut, by joining with a group of six other organizations to purchase a bulk order of vans, the eCommerce provider gains access to a bulk discount through increased purchasing power.Ĭost savings aren’t the only benefit, though. A Purchasing Group is a group of organizations that have banded together to scale economies and increase their purchasing power with suppliers.įor example, imagine that a procurement team at an eCommerce business has been directed to buy a fleet of delivery vans.
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