There are many advantages of participating in a purchasing association. These networks allow distributors to grow sales, develop new professional relationships and overall give businesses more flexibility in their ability to make purchases. According to the Healthcare Supply Chain Association, more than 600 organizations in the U.S. participate in some type of purchasing association. Here are few reasons why it's beneficial to become a member of a purchasing network:
Buying groups often host annual meetings and industry shows for member organizations. These meetings are additional face-to-face networking opportunities and chances for distributors to learn more about the products they sell. According to an infographic from Great Business Schools, 85 percent of professionals believe in-person meetings help to build stronger and more meaningful business relationships. In other words, attending purchasing network events strengthens business partnerships.
"Purchasing networks provide opportunities for sales growth."
Become part of a larger network
Belonging to a group also gives distributors name recognition they might not have otherwise had. This means cold-calling customers no longer needs to be a frustrating experience. Customers have likely had interactions with the purchasing association before, which makes it easier for vendors to make a connection with them. Distributors are able to start the conversation off on the right foot by identifying their business as part of a larger purchasing network.
"The buying power of the network enables distributors to compete with larger chains."
Suppliers trust the group to vet members
Members of purchasing associations obtain deals that allow them to compete with larger chains. In addition, the collective buying power of the group enables it to compete with bulk pricing from big-box stores. Smaller distribution organizations may have trouble meeting the minimum purchase amounts required by suppliers to obtain bulk pricing. When these smaller organizations band together, they are able to receive lower prices for their inventory – cost savings they pass down to their customers to remain competitive.
There are many benefits to participating in a purchasing association. Not only do distributors gain competitive deals when buying products, but they also obtain closer access to participating suppliers and invaluable networking opportunities. Working with a purchasing association gives distributors the ability to cultivate valuable relationships, which lead to sales growth.
Do you want to become part of a top-notch network of distributors? Partner with AMMEX.