"The most obvious advantage of a purchasing group is the scale economy. The volume of the aggregated purchase demands, such as a network of minority businesses coming together to order supplies, gives the individual businesses access to scale economy and consequent purchasing power that they could not hope to obtain alone."
HOW GROUP PURCHASING PUTS YOU AHEAD OF COMPETITION
Joining a purchasing organization enables you to get goods at subsidized prices. The group bargaining power will lobby the suppliers to release goods at cheaper prices. This in return will enable you to stock the products at discounted prices. This puts you ahead of your competitors who might not necessarily have gotten their goods at low prices.
Better Quality Goods
The purchasing power of the group can as well enable you to get quality goods. GLOBALMPG experienced sourcing staff will constantly push the suppliers to sell to you quality products as they are already aware of counterfeit products.
Ease of Access
Needless to say, sourcing for items as a group is a lot easier than doing it individually as a business. Whether you are running the business alone or with the help of a few employees, it will be easier to buy from the group organization. The more easily you can access items for your business to restock the inventory the more assured you are that your stock is unlikely to be depleted. While some of your competitors have a problem restocking, you will be a step ahead.
GLOBALMPG group purchasing organization does not only source for products for its members but also look out for factors that may inhibit product supply and sort them out. It could be disloyal suppliers or unfavorable pricing. These are some problems that businesses encounter and are unable to meet the demands of their customers. Being in a buying group will help you avert these and have a constant supply of your products. The knowledge that a group purchasing entity will sort out all your orders gives you the liberty to focus on other important aspects of your business.
Group Purchasing Maximizes Profit
The primary role of any business is to make profits. With a purchasing organization, you can source your products easily hence saving on several business overheads. Instead of using middlemen who in the end may swindle you off your cash, you have a safe platform to make your purchases. In the event that your competitors are not part of a purchasing organization, you will definitely be ahead of them in the profit ranking.
Optimized Resource Utilization
Did you know that your business greatly depends on the level at which your employees are committed to working on their roles in the business? Your employees are your main resource.
One of the easiest way to avoid time wasting and maximize employees output is to optimize supplier management. This is greatly boosted by being in a purchasing organization.
Mitigated Risks on Wrongful Purchases
Buying under a group purchasing orginazation gives you better security in case your order is wrongfully delivered or you need to change your order. Dealing with a one-time supplier may make this process a bit tedious as;
Work-relationship has not been established
You do not have a body lobbying for your needs
The supplier may not encourage or have a return policy in place. In a group purchasing organization, you have a team handling such issues, giving you time to concentrate on your business
Lower prices/Greater negotiating power
Reduction of transaction costs
Improvement in best practices over time