Group purchasing
An arrangement in which independent businesses pool their orders to negotiate better pricing from shared suppliers. Unlike a franchise buying group, membership is voluntary and the companies remain fully autonomous.
In practice
Group purchasing is common in foodservice, pharmacy, and retail. Coordinated volumes typically deliver discounts of 5 to 20 percent on standard references. One compliance risk: exchanging resale prices among members can constitute a cartel prohibited by competition authorities. The scope of the arrangement must be limited strictly to procurement coordination and nothing beyond.