What is Consortia Procurement?
A “consortium procurement” strategy is used when two or more independent companies collaborate and pool their funds to meet one another needs for products and services.
Combining forces is primarily intended to increase savings by enhancing each company’s purchasing power and leveraging larger economies of scale and supplier pre-negotiated prices. The consensus is that small and medium-sized businesses would benefit more from using consurtium buying strategy.
Advantages of a Consortium:-
Having access to a group of like-minded collaborators through a consortium can:
- Improve the quality of the value and service
- Save time and money because all members’ interests are considered when making a tender.
- Offer specialized assistance and direction
- Give opportunities for people to compare notes and gain knowledge from others
- Cut back on timeframes
- Lowering the risk of non-compliance with procurement regulations (since all members are represented in compliant procurement).
