Purchasing and supply

Purchasing and supply co-operatives…

• Facilitate independent business owners to benefit from economies of scale
• Support and encourage entrepreneurship
• Lower input costs: improve business productivity and efficiency
• Lower production costs: pass on better value to consumers
• Provide access to finance for small business
• Profit sharing spreads the benefits of business: wealth is distributed more widely

Facilitate independent business owners to benefit from economies of scale

Purchasing and supply service co-operatives are able to benefit from economies of scale in procurement and throughout their supply chain which enables them to operate in sophisticated, crowded markets whilst simultaneously maintaining their focus on their locality.

Support and encourage entrepreneurship

The existence of co-operative business consortia enable independent business owners to run and operate businesses in competitive marketplaces where they would otherwise be squeezed out by pressure from large listed firms. They help to foster a spirit of entrepreneurship in a marketplace where such zeal could otherwise be pushed out. 

Lower input costs: improve business productivity and efficiency

Shared procurement and operating costs help to improve the productivity and efficiency of businesses which benefit regional Australians without creating a monolithic enterprise which can leave people overcharged and underserved. 

Lower production costs: pass on better value to consumers

Economies of scale enable co-operative enterprise consortia to help lower the costs of production which helps drive value for the consumer.

Consortia provide access to finance for small business 

The co-operative enterprise consortia model is extremely successful at producing access to finance for smaller, regional businesses who would otherwise struggle to compete in developed markets. 

Profit sharing spreads the benefits of business: wealth is distributed more widely

Co-operative business consortia facilitate profit sharing which means that wealth is more widely spread amongst Australians. In a co-operative, ownership and the ensuing benefits are spread more widely than is typically the case for listed businesses.