This is a common scenario. Nowadays, many buyers come together to save money on a wide range of items and end up combining their needs to get discounts based on volume. These are called wholesale retailers. Supermarkets such as ASSAI, Sam's Club and Makro, for example, operate in this way and are able to offer much more competitive prices on the market. This happens because buying in large quantities allows for greater discounts and, consequently, the end consumers gain more advantage.
It is no wonder that among large retailers, stores of this nature have shown significant growth. Recently, the National Association of Wholesalers and Distributors (ABAD) reported an increase of around 7% in the sector's activity, in contrast to the economic crisis faced in Brazil.
We are currently experiencing a period of economic recovery and, according to experts, from the second half of the year onwards, we will have a better business scenario in the country. Therefore, uniting buyers based on a common purchasing need makes more and more sense. Given these facts – and with an emphasis on the corporate world, it is possible to observe a very similar trend, boosted by business networks, buyer communities or even by Group Purchasing Organizations, GPOs, as they are called in the United States.
If the rule in the B2C market is that people look for the lowest price, in B2B, this is not just a decision factor. For the purchase of routine items, that is, those products with low cost, but that require time to negotiate, the best option is to look for quantity to get discounts and also to evaluate issues such as supplier delivery times and quality, for example. For companies, specialization in purchasing and methodologies, in accordance with best practices in this area, has Strategic Sourcing as its main tool.
This model is used to optimize and improve the acquisition process of organizations, taking into account everything that has been discussed so far. It is worth noting that, by adding this concept to the technology of B2B marketplaces, capable of bringing together thousands of purchasing and supplying companies, joint purchasing behavior is expanded to a much larger scale.
A “Buying Club for Companies” goes far beyond offering immediate gains to companies that share their spending history and have access to catalogs and price lists previously negotiated with approved suppliers. Each new demand shared with the Club generates quicksourcing – a scalable way of doing business. Strategic Sourcing, and new catalogues or updated price lists with mutual gains.
One of the advantages of the Shopping Club is the reduction in costs, which varies according to the item and the quantity of products purchased. There are cases of companies that have saved up to 15% by purchasing products electronically with the Club. Not to mention the agility in purchasing processes, improved cost-benefit analysis and optimized negotiation of various product categories.
What’s more, the buyer can also quickly and assertively evaluate the proposals received by suppliers, be transparent about the purchasing decision and provide constructive feedback to those responding to the quotes. In other words, the company that purchases the products and/or services ends up helping suppliers make better offers in the future – which feeds a network of faster and more efficient decisions. In a highly competitive world, this is a characteristic that must be taken into account.
Therefore, keep in mind that when the purchasing department aligns its objectives with the other areas of the company, especially the financial department, overcoming the constant challenge of making the sector more efficient becomes a reality. In addition, it is still possible to make the sector more productive and, consequently, more profitable since, by obtaining discounts on purchases, the reduction value directly impacts the company's results.
I reiterate that aligning strategies and doing good business is a viable reality. And, in my view, the concept of Shopping Club is the best way to achieve this goal. Cost reduction and process optimization are some of the benefits. Analyze when you can enjoy these advantages and contribute to your company. Good business!
Discover how to have more visibility in B2B business.
