Purchasing consortia: when money does not make the whole talk Online publication date: Thu, 30-Apr-2015
by Ole Stegmann Mikkelsen; Jan Stentoft Arlbjørn
International Journal of Procurement Management (IJPM), Vol. 8, No. 3, 2015
Abstract: The aim of this paper is to contribute to the understanding of the drivers, barriers and managerial challenges in connection with being part of purchasing consortia. The main focus is on the social interests in attending such consortia. The work relies on an extensive review of international peer-reviewed journals for articles covering purchasing consortia. The literature review identified a gap concerning purchasing consortia with a social interest profile. The paper includes data from a coordinator that manages a purchasing consortium with social motives as well as from three member companies. Primary drivers for participating in the consortium are potential cost reductions, the social profile of the network, and the ability to improve other conditions in the buyer-supplier interaction. Barriers found are lack of trust, switching from current suppliers to consortium suppliers, variety in participants' requirements and lack of an attractive business case.
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