Benefits of Belonging to Purchasing/Shared Services Co-ops

Belonging to a purchasing or shared services cooperative can be the key to prosperity and even survival for many small businesses. Throughout history, cooperatives have been innovators and pacesetters, and this is just as true of a purchasing/shared services cooperative as any other. Members of these cooperatives have found that they can adapt quickly to changing economic conditions rather than become victims of them. Through these cooperatives, businesses and public entities have found they can reduce costs, respond better to competition, and improve overall performance.

Members also receive these economic benefits while maintaining the independence of their business. A cooperative is one way for individual store owners — the backbone of Main Street — to prosper and effectively meet the challenge of chain stores.

For example, Strategic Alliance Alert: Joint Ventures and Partnerships reported in 1994 that FoodService Purchasing Cooperative saved its members $1,000 per month per store.

Cooperative benefits come not only from initial savings through group purchasing power, but also from sharing the earnings of the cooperative based on the patronage or use of the co-op.

• Benefits


• Services


• Operations


• Elements of Success
• Resources