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Purchase Co-operation, an Effective Tool to reduce Purchasing Costs
  • In all economic and social areas the attempt is made to strengthen the own
  • position by establishing cooperation structures to obtain cost advantages.
  • Companies have to find new ways to withstand the increased competition due to the globalization and changes in frame conditions / market structures. 
  • The company who has more buying power buys more favourably. 
  • In this area the economy has a considerable backlog. In particular with regard to the middle class there are offered great opportunities to realize cost reduction.

 

The following Cooperative Goals can be achieved:

  • A most urgent goal of each co-operation is the reduction of costs, which means the   achievement of favourable procurement prices.
  • By bundling the purchasing volumes and by appropriate lot sizes price and condition advantages will be achieved. Finally the supplier also benefits from co-operations,  because he will obtain cost advantages by producing / buying larger quantities.
  • Internal procurement costs can be decreased. The quantity of once required purchasing negotiations reduces by concluding framework contracts. The individual buyer is thus able to spend more time on his strategic goods.

 

Create Conditions for the Co-operation

 

  • The business relationship between the cooperative partners will be supported by a legally independent enterprise.
  • A next step is to define the requirements each company intents to bring in into purchase co-operation.

Requirements for Suitable Products


The products which are applicable for a purchase co-operation bear the following characteristics:

 

  • They are standardizable
  • They have no strategic meaning for the individual enterprise
  • They can be purchased in large volumes
  • They have a positive affect on the procurement costs of the enterprises

 

 

Necessary Steps for the Selection of Suppliers

 

  • Bundling of the requirements
  • Advertisement
  • Evaluation of the advertisements
  • Local negotiations with the suppliers (company visits)
  • Renegotiation
  • Price, quality and reliability are a mandatory condition for a co-operation
  • Credit rating (via credit insurers)
  • Coordination with the cooperation partners
  • Completion of a basic agreement between the external supplier and the supplier. (Price, condition framework and duration)
  • Completion of single contracts between cooperative members and the supplier on basis of the basic agreement.
  • Arrangement and adjustment between cooperative members and suppliers. (Product          liability)
  • Our activity is limited to the mediation between cooperation partners and suppliers.

 

Costs for the Cooperative Members

 

  • There are no costs resulting from our mediation activities for cooperation partners.

 

Anti-Trust Evaluation

 

It is not expected that Legal objections, in particular of  the cartel law or the law against unfair competition should lead to problems for purchase co-operation. §. 4 sect. 2 GWB exempts co-operation from small and middle enterprises in the purchase from the trust prohibition of the §1 GWB under certain conditions, in order to adjust the structurally caused disadvantages of these enterprises in relation to large-sized forms of enterprises.

 

Purchase co-operations of medium-sized enterprises are an instrument to serve the competitiveness ability and thus support the conservation of a various, consumer-friendly        structure of supply. Purchase co-operations have to be announced at the responsible cartel authority.

 

 

 


 
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