The Rationalization of Logistics and Procurement Costs in the Process of Purchasing Consolidation

Combining enterprises into purchasing groups unlocks the potential for cost savings and reductions by way of, among others, using the economies of scale. The consolidation of demand offers better trading terms and conditions than those negotiated by single companies. Experience suggests that the best cost savings can be brought by joint procurement of those commodities, which support the functioning of enterprises. The Authors look into the models of functioning of purchasing groups that they have modified. Group formation stages are also being investigated based on the case study.