Pooled Procurement Functionality
Pooling procurement or aggregating demand offers a wide range of benefits, positioning it as an exciting strategic option for organisations delivering humanitarian, healthcare, and social impact responses
By enhancing procurement efficiency and fostering collaborative opportunities, Aggregate Demand maximises the impact of available funding and paves the way for a more effective and sustainable future for our sector
That’s why we are thrilled to introduce Solvoz’s Aggregate Demand functionality, empowering organisations to leverage greater negotiating power and achieve substantial reductions in unit prices, supply chain costs, and administrative burdens
It also offers advantages to our wider sector, such as standardising solution specifications, improving quality assurance, and creating opportunities for shared learning
Solvoz’s innovative Aggregate Demand feature is now also available via our Tailor-made Technology (white-labelling) service
Five compelling arguments for Aggregate Demand
Click each point to explore further!
- Economies of scale: Aggregating demand across multiple buyers enables the involved actors to achieve greater economies of scale, leading to lower unit prices for goods and services.
- Greater bargaining power Likewise, Aggregate Demand also consolidates the purchasing power of multiple buyers. This enables collaborating NGOs to negotiate better terms with suppliers, including lower prices and improved contractual conditions.
- Improved supply chain efficiency: Demand aggregation also optimises supply chain processes by reducing duplication, minimising waste and streamlining logistics.
- Harmonised standards: Pooled procurement facilitates the establishment of common standards for product quality. This helps to ensure that procured items adhere to appropriate specifications.
- Standardised processes: The collaborative nature of Aggregate Demand also encourages the development of standardised procurement processes. This encourages improved procedural consistency and adherence to recognised best practices.
- Increased diversification: Demand aggregation mitigates the risks associated with relying on a single or limited number of suppliers by facilitating engagement with a broader and more diverse range of vendors. This importantly also contributes to the localisation of humanitarian aid.
- Enhanced resilience: Collaborative procurement models enhance resilience by distributing risks and uncertainties amongst multiple stakeholders.
- Reduced administrative burden: Aggregate Demand simplifies administrative tasks by centralising processes such as requests for quotations, establishing LTAs and Framework Agreements. This reduces the administrative burdens on individual buyers.
- More efficient resource allocation: Resources are allocated more efficiently as demand aggregation allows for the consolidation of procurement efforts. This helps to avoid duplication and other inefficiencies.
- Improved access: Aggregate Demand ensures a more equitable distribution of resources, reduces disparities and enhances access to critical goods and services – particularly in regions with limited resources.
- Inclusive collaboration: Increased collaboration amongst different organisations fosters inclusivity. This enables smaller entities to benefit from the negotiating power and expertise of larger participants. Such enhancements to inclusivity within our sector are integral to the advancing of Grand Bargain initiatives.
- Transparent processes: Demand aggregation promotes transparency in procurement activities, fostering trust amongst different stakeholders and reducing the likelihood of fraud.
- Accountability: Clear accountability structures are established within pooled procurement models. This ensures that procurement decisions are made collectively and in alignment with predefined standards.
Aggregating Demand: Promoting Success for All
Solvoz’s Aggregate Demand functionality seeks to address the fragmented procurement practices within the humanitarian sector by streamlining procurement processes and activities through a collaborative portal.
It also enables participating organisations to cultivate a monopsony. This is a situation whereby major buyers can collectively drive market dynamics, thereby ensuring optimal terms of supply for essential resources.
Crucially, this is achieved whilst collaborating organisations maintain individual responsibility for their specific demands and requests.
Therefore by leveraging the advantages of collective procurement, our Aggregate Demand functionality enhances both the individual impact of collaborating organisations and improves overall procurement efficiency in our sector.
Is your organisation, country response, or collaborative alliance keen to embrace this strategic opportunity?
Reach out to us and harness the power of Aggregate Demand today!