Melbourne’s North Buying Group
Businesses that take part in group buying benefit from significant cost savings, reduced time sourcing suppliers and increased confidence that they are receiving value for money.
Melbourne’s North Food Group and NORTH Link have partnered with Fulcrum Procurement to deliver group buying opportunities through the MN Buying Group.
The Buying Group is exclusive to MNFG partners and is reducing external costs for areas such as ingredients, packaging, transport and manufacturing supplies.
What is group buying?
Group buying combines the demand of multiple businesses and uses that purchasing power to leverage competitive prices from suppliers. Businesses involved with group buying are offered significant savings on a range of goods and services regularly used in their workplace.
Suppliers are sourced through an extensive tender process that is tailored to the needs of businesses. Businesses provide the buying group with data, including their current demand, prices and suppliers. The buying group conducts several rounds of tenders with suppliers to obtain the best prices and best quality. The supplier offering best value to the buying group is appointed to provide the required goods or services.
Businesses in the buying group can then order directly from the supplier. The supplier will apply the agreed discount to all purchases made by businesses inside the buying group. There’s no cost to them and no obligation to purchase. Partners are free to continue using their own suppliers or mix and match with preferred suppliers if that suits their needs.
How businesses benefit from group buying
Group buying delivers a reliable supplier that provides quality at a cost-effective rate. For example, goods and services spend can make up 80 per cent of a food manufacturer’s cost base, making group buying a fast, effective and low risk way to reduce operational costs. SMEs are likely to make significant savings. In the pilot category of micro testing and laboratory services, the average savings identified for partners was 30 per cent.
The buying group sources suppliers that are committed to giving partners value, while providing access to a network of clients for suppliers. Partners and members are invited to participate in tenders to give them the best opportunity to grow their businesses.
Value is created for businesses by:
- consolidating volumes to increase buying power
- using industry leading sourcing practices and methodologies
- addressing multiple spend categories quickly
- providing ongoing vendor management and continuous improvement.
Suppliers benefit from:
- access to an expanding community of food and beverage producers
- promotion by Fulcrum Procurement, via website, newsletters and webinars.
- increased sale volumes
- lower customer acquisition costs.
Current group buying opportunities
Partners can access the group buying opportunities currently available through the Melbourne’s North Buying Group. More opportunities will be advertised as they become available. There will be a call to members for expressions of interest in each category, and a request for data to build a baseline for the tendering process.
The green highlights show categories that the Buying Group will complete in 2020. The remaining categories will come online in 2021.
The percentages indicate the industry average savings that are being made.
How to get involved
Businesses can join the MN Buying Group to take advantage of group buying opportunities that will reduce costs of ingredients, materials and services. Suppliers can become involved by offering value to the MN Buying Group and its network of businesses.
Interested in buying?
All partners and members are eligible to access these group buying opportunities. Businesses that are interested in purchasing must be an MNFG partner.
Interested in supplying?
MNFG and NORTH Link will communicate tenders for upcoming group buying opportunities as demand for specific goods and services is established. Suppliers of specified goods and services are selected through a tender process. Businesses can contact David if they would like to learn about current tenders at firstname.lastname@example.org.
Establishing the MN Buying Group
Melbourne’s North Food Group was established to elevate the local food and beverage manufacturing industry, and help businesses improve productivity, competitiveness and capability.
Since its inception, MNFG has provided its member partners with services including business reviews, best practice systems, export advice, training, trade shows/mission and more. Feedback from partners indicated that group buying was of strong interest, so MNFG responded by establishing the MN Buying Group to help businesses reduce costs and receive value.
Fulcrum Procurement joined MNFG to provide group buying opportunities for MNFG partners. Fulcrum operates a buying group model that offers collective purchasing agreements to food and beverage manufacturers Australia-wide.
Group buying process
The group buying process ensures options are thoroughly assessed so that businesses receive the best price and quality.