When Bigger Is Better

March 2, 2016 Katie McGinn

Sourcing aggregations are a collaborative activity between two or more independent organizations that aggregate their collective buying power to reap the benefits of increased economic leverage, quality, cost savings, and service provisions from their suppliers. In a volatile and globalized market characterized by interdependence, communication, and rapid innovation, aggregation has surfaced as a high-level strategy for gaining resource leverage.

Despite an attractive spectrum of advantages and opportunities resulting from aggregation, there is an ideal time and process for everything. In this paper, we navigate the timing and strategies required to attain the greatest reward from such collaborative sourcing efforts. We also examine how companies can cooperate to source, and how to select the best aggregation partners according to your business’s needs. Category expertise and strategic sourcing competency will enable you to unleash substantial yet often overlooked rewards. 

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