Consortium buying attempts to create, and then harness, economies of scale to boost purchasing power and save you money. And some businesses – especially small- & medium-sized enterprises – can derive some benefits from consortium buying.
But why do consortium-buying models often fail large, global enterprises?
In The Pitfalls of Consortia Buying for Large Global Enterprises, researchers from GEP describe the most serious challenges associated with consortium-buying models, demonstrating just how the size, structure, complexity, and diversity of stakeholders at larger organizations make consortium buying both less effective and less desirable.
The paper also lays out alternative strategies that consistently yield better results.The Pitfalls of Consortia Buying for Large Global Enterprises is complimentary to sourcing and procurement professionals.