Buying organisation may increase its leverage with suppliers by concentrating spend. Supplier spend

consolidation can take many forms as outlined below:

Vendor base reduction: straightforward reduction of number of suppliers in any category

Volume pooling: pooling cross organisational requirement until your order volume is high enough to

attract new bidders/additional discounts

Volume redistribution: making recommendations following spend analysis to move from one

supplier to another

Volume consolidation across categories: certain purchase requirements may be common across a

number of categories

Standardisation and harmonisation of specifications: analysis of specifications and standards for a

high spend purchased input, may show that there is a little difference between them and that the

specification can be standardised or at least harmonised across the group or across national, regional

or global operations.

Forming purchasing consortia: buyers may decide to come together and combine their purchase

volumes to attract better deals.