In the current times, enterprises are looking for areas where they can reduce operating costs. One way to reduce the costs incurred for the purchase of materials is to organize a purchasing group, which consists of independent enterprises operating on the market. Entities in the market then associate for a specific purpose, i.e., to make smaller expenditures on purchases and obtain savings in this respect.
Companies aggregate their demand by making purchases through one organization, and by achieving economies of scale, they gain a stronger position in negotiations with suppliers, which allows for better commercial terms. The term commercial terms covers many factors. Price is not the only determinant of efficiency and savings, although obtaining a lower price is a measurable and indisputable saving. Nevertheless, the goal of a purchasing group should be to reduce operating costs and obtain broadly understood benefits. A purchasing group is not a new concept in the global economy, nor in the Polish one. It is a natural next stage in the development of the purchasing area.
In this article, the authors will focus on the functioning and study of purchasing groups for independent companies that are not capital-linked. In recent years, a very strong trend of forming purchasing groups has been noticeable in Poland, which is also intensified by the growth of various types of cooperation organizations for associated companies. The European Union allocates significant financial resources for the creation and operation of organizations contributing to the sustainable development of associated companies in the form of regional clusters, competence centers, industrial and scientific parks, etc. This contributes to the cooperation of companies and the formation of further purchasing groups of companies that cooperate strongly with each other.
Group purchasing
Logistics costs in enterprise costs represent a significant share, as confirmed by the following information:
a) the share of material costs in enterprise costs ranges from 50 to 70%, depending on the industry,
b) the share of inventory in current assets often accounts for approx. 30%,
c) significant costs of transport means and electronic data processing.
Analyzing the above data, it can be seen that a large part of enterprise costs is related to procurement. Therefore, optimization activities in the area of purchasing can bring significant savings for the enterprise. Additionally, it should be remembered that an optimal level of material procurement contributes to the enterprise achieving a competitive advantage in the market, which in current times is an important element of a company’s success. The proper functioning of the procurement sphere also affects product quality, the level of logistics customer service, and the costs of the entire logistics system.
Procurement purchases are defined as the function responsible for acquiring equipment, materials, components (semi-finished products), parts, and services through purchasing, leasing, or other legal means for the purpose of their consumption for production or resale.
It can therefore be concluded that the purchasing area includes many elements, and reducing even a portion of the expenditures incurred for procurement purchases will contribute to reducing the costs of the procurement area.
Source: Logistyka Magazine 5/2013
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