An Introduction to Buying Groups
What is a Buying Group?
In its simplest form, a Buying Group is the coming together of similar independent businesses to leverage their combined purchasing power to receive better pricing and terms on the products they buy. Successful Buying Groups bring efficiencies to the supply chain rather than simply flexing their “market power” to extract a better deal. Efficiencies are created when Suppliers can rely on the Buying Group to perform functions more cost effectively for its Members as a group, than the current model of each Supplier dealing with each independent separately.
Buying Groups operate in most Industry Sectors. They operate at both the wholesale and retail level. Buying Groups exist in Canada, US, Australia, New Zealand, United Kingdom, Ireland, and most countries in Europe.