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 has 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.
Current group buying opportunities
Partners can access the group buying opportunities currently available through the MN Buying Group.
