Purchasing Consortia in the Public Sector: Models and Methods for Success
Mary M. Aylesworth, MBA, C.P.P., C.P.M.
Mary M. Aylesworth, MBA, C.P.P., C.P.M., Executive Director – Education, Purchasing Management Association of Canada, 416-977-7111 ext 3122, email@example.com
88th Annual International Conference Proceedings - 2003 - Nashville, TN
The public sector reform movement has spawned increased interest in consolidation and outsourcing as a means to optimizing the public tax burden. The push for purchasing cost efficiencies can create complex dilemma for administrators, whether functional activities are managed centrally or distributed. For those managing the purchasing function, the situation has become a squeeze play. While there is increasing pressure to reduce commodity costs to meet budget cuts; budgets to achieve these expectations have themselves been drastically cut. With the demand for efficiency gains in annual spending intensifying, the more successful an organization is in achieving their targets, the more likely it is that targets will become increasingly stringent (in Carter and Greer in Pollitt 1995). This translates into a drive for greater cooperation across the public sector, a drive notably evident in the formation of purchasing groups among school systems, hospitals, municipal governments and universities.