What is meant by Volume bundling?
The term "volume bundling" refers to the procurement strategy of concentrating order quantities or values to achieve better terms with suppliers. By consolidating demands across different departments, locations, or even companies, a higher purchasing volume can be achieved, typically resulting in more favorable prices or improved delivery conditions.
Typical software functions in the area of "volume bundling":
- Demand analysis: Identification and aggregation of similar or identical demands across various organizational units.
- Supplier consolidation: Merging orders with fewer suppliers to increase volume per supplier.
- Framework contract management: Creation and administration of framework agreements for bundled volumes.
- Simulation tools: Calculation of potential savings through various bundling scenarios.
- Spend analysis: Detailed breakdown and visualization of purchasing volume according to various criteria.
- Purchasing cooperation management: Support in coordinating cross-company purchasing cooperations.
Examples of "volume bundling":
- Group-wide bundling of office supply purchases to one main supplier.
- Consolidation of orders for packaging materials across multiple production sites.
- Formation of a purchasing alliance of several medium-sized companies for IT hardware.
- Quarterly ordering of raw materials instead of monthly individual orders.
- Bundling various print jobs into a total volume with one print service provider.
- Consolidation of energy procurement for all branches of a company.