1. WHAT ARE THE POTENTIAL SAVINGS ?
The level of savings will vary from category to category. Data from previous tenders shows savings ranging from 10% to 55% in some categories. Our rigorous tender process ensures we can achieve the most commercially competitive rates available.
2. DO I GET BETTER RATES WITH MORE VOLUME ?
The prices we negotiate from suppliers are already based on the buying group’s combined volume, so each member benefits from better pricing than they could achieve individually. As the buying group grows we will re-tender with suppliers, using the increased buying group volume as leverage to get even better prices.
3. HOW MUCH DOES IT COST TO JOIN ?
Nothing. It is free to join the buying group and to purchase using a buying group contract. We negotiate a small rebate from contracted suppliers to cover our costs for running the tenders and managing the buying group and pass on all the rest of the benefits to members.
4. ARE THERE ANY OBLIGATIONS IF I JOIN ?
The only obligations are not to undermine the ability of the buying group to provide benefits to all members and not to disclose pricing and commercial arrangements to third parties. These obligations are detailed in the T&Cs on the member sign up page
5. IF I JOIN, AM I OBLIGATED TO USE THE BUYING GROUP SUPPLIERS ?
No. If you like the prices we have been able to negotiate you contact the supplier and purchase. If you don’t want to purchase from our recommended supplier, you don’t have to. You’re free to ‘mix and match’ in any way too, meaning you can use the buying group suppliers for some items and your own pre-existing suppliers for others
6. WHAT GUARANTEES OF QUALITY OR SERVICES DO I GET ?
We evaluate potential suppliers both on price and on service capabilities. There’s obviously no point getting ‘good’ prices if the the goods are substandard. We’re food and manufacturing industry experts (with experience as food producers as well as running procurement tenders) and consider quality and service as well as prices when selecting a preferred supplier. However, each member has needs that are specific and unique, so you need to do your own due diligence to ensure that the goods or services supplied are fit for your purpose.
7. WILL I HAVE TO CHANGE SUPPLIERS ?
If you are not currently buying from the buying group’s preferred supplier for a category, then you will need to change suppliers to gain the buying group benefits. One of the advantages of working with our buying group is access to leading suppliers that small and medium sized manufacturers sometimes can’t access. We are also available to support with the transition to a new supplier if needed.
8. HOW DO YOU SELECT SUPPLIERS ?
We talk to all members to identify their needs in specific categories, and then tailor a tender accordingly. The combined buying power of our group creates significant competition for our business, resulting in competitive pricing from capable suppliers. We run multiple rounds of negotiations to ensure we get the best possible prices. It’s time consuming, but it’s worth it. We often find that by the time we have completed the third round of tenders we have doubled or tripled the size of the savings we’re making for the group. Importantly, we evaluate suppliers on quality and service as well as price and make our selection based on a combination of quality and price. We also negotiate a standard form purchase contract which you can use if you want. Again, no lock in. If you’re not big enough to have your own contract agreements, then you can use these.
9. DO I PLACE ORDERS WITH FULCRUM OR THE SUPPLIER ?
You place orders directly with the supplier as you normally would.
10. DO I PAY FULCRUM OR THE SUPPLIER ?
You pay the supplier directly as normal.
11. WHAT IF THE CATEGORY OF GOODS OR SERVICES I'M INTERESTED IN ISN'T AVAILABLE YET ?
We’re continually expanding the categories that we cover. The What's New page shows our current offers and the ones that are in development. To register your interest for potential new categories, drop us a line using the form on the Contact Us page. This will help us understand your specific needs so that we can tailor our future tenders to your requirements. Keep an eye on our What’s New blog or join our mailing list to stay up to date on category developments. Alternatively, you can call us to discuss your specific needs.
12. DO YOU OFFER ANY OTHER SERVICES ?
Yes. We offer the full range of strategy and operations consulting options tailored to the food and beverage production industry: Strategy, market entry planning, operations improvement and cost transformation to name a few. Between us we’ve spent 25+ years in manufacturing and have top tier consulting backgrounds. Give us a call and we’d be happy to discuss how we can help.