Solvoz: Facilitating Collaborative Pooled Procurement Models
Introducing Solvoz's Pooled Procurement functionality
We are thrilled to introduce Solvoz’s new, groundbreaking pooled procurement functionality, which ushers in a host of transformative benefits tailored to the unique needs of NGOs and the broader humanitarian sector.
By leveraging collaborative pooled procurement (as configured by the involved entities), NGOs can now harness enhanced negotiating power and achieve significant reductions in unit prices, supply chain costs and administrative demands. This innovative functionality, therefore not only ensures that increased efficiency and effectiveness in procurement translates to real cost reductions for the participating actors, but can also facilitate systemic improvements within our wider sector. These broader benefits include the standardisation of solution specifications, enhanced quality assurance and the provision of opportunities for shared learning.
By pooling demand and collaboration features, Solvoz enables NGOs to streamline procurement processes, improve resource allocation and contribute to a more equitable provision of humanitarian aid. This marks a pivotal step forward in transforming procurement within our sector and advancing towards a more sustainable and effective future for the delivery of humanitarian assistance.
This feature is also available on our white-labelled platforms
Five compelling arguments for Pooled Procurement in the humanitarian sector
Pooled procurement presents a wide array of advantages, making it an attractive strategic option for organisations within various sectors, including those involved in delivering healthcare and humanitarian responses.
Here are five key arguments for promoting Pooled Procurement within our sector (click on each to learn more):
- Economies of scale: By aggregating demand across multiple buyers, pooled procurement enables involved actors to achieve greater economies of scale, leading to lower unit prices for goods and services.
- Greater bargaining power Likewise, pooled procurement 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: Pooled procurement also optimises supply chain processes by reducing duplication, minimising waste and streamlining logistics. This results in additional cost savings.
- 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 pooled procurement also encourages the development of standardised procurement processes. This encourages improved procedural consistency and adherence to recognised best practices.
- Increased diversification: Pooled procurement 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.
- Enhanced resilience: Collaborative procurement models enhance resilience by distributing risks and uncertainties amongst multiple stakeholders.
- Reduced administrative burden: Pooled procurement simplifies administrative tasks by centralising processes such as requests for quotations, establishing LTAs and Framework Agreements. This reduces the administrative demands on individual buyers.
- More efficient resource allocation: Resources are allocated more efficiently as pooled procurement allows for the consolidation of procurement efforts. This helps to avoid duplication and other inefficiencies.
- Improved access: Pooled procurement 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, enabling smaller entities to benefit from the negotiating power and expertise of larger participants. Such improvements to inclusivity within our sector are integral to the advancing of Grand Bargain initiatives.
- Transparent processes: Pooled procurement 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
Together these key arguments position pooled procurement as an effective and strategic approach to optimising humanitarian procurement processes, attaining increased cost efficiency and amplifying the impact of organisations across various sectors.
As we continue to witness an escalating demand for humanitarian assistance across the world, humanitarian actors confront an ever-growing need for their help, all whilst grappling with the persistent challenge of limited resources that is commonplace within our sector. The outlined advantages of pooled procurement are therefore of particular importance at this crucial juncture. Crucially, pooled procurement empowers humanitarian organisations to maximise the impact of their available funding and foster collaborative opportunities throughout our sector. This contributes to the development of a more efficient and effective future for our sector as a whole.
Pooled Procurement powered by Solvoz
All in all, our platform enables the creation of a collaborative ecosystem whereby NGOs and other impact-driven entities can work together and utilise their individual resources more efficiently and effectively.
Most fundamentally, when considering the unique landscape of procurement in the humanitarian sector, our new model strives to address the inherent challenges posed by the currently fragmented procurement efforts we now have. This includes enabling more streamlined approaches and the harmonisation of procurement activities within a collaborative portal, with each NGO retaining crucial responsibility for their demands and requests. This approach empowers organisations to attain a more efficient allocation of resources and reduce regional disparities in the markets they serve and purchase from.
Crucially, 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.
In leveraging the benefits of this collective approach, Solvoz’s new functionality therefore offers advantages to both collaborating organisations – by amplifying their individual impact – and to our sector more broadly, by achieving greater efficacy across the board. Our emphasis on transparency in procurement processes also instils confidence in suppliers, mitigates risks and opportunities for corruption, and contributes to increased supply equity across diverse markets.
Interested?
In essence, Solvoz’s pooled procurement functionality represents a strategic leap forward. It empowers NGOs and humanitarian entities to collaboratively optimise their procurement processes, and drive cost-effectiveness and supply chain efficiencies throughout our sector.
Are you interested in establishing a Pooled Procurement Portal for your agency, country response or collaborative alliance? Then please reach out to us!