Smart-Purchasing.com: Best Practices: Checklist

Best Practices: Contracting
Leverage Consortium-Buying Opportunities

Traditional	Best Practice
Purchases made on the business unit or company-wide level	Leverage volumes across companies with similar product requirements by means of creating buying groups or consortiums.

Rationale
Leverages combined volumes for price concessions. Facilitates sharing of best practices.
Details
Some of the better known examples of consortium buying are: the worldwide airline confederations, Oneworld and Star Alliance, which view their consortium buying power as one of their most effective value-creation mechanisms.

Best Practice | Case Study | Commentary