Which procurement method involves several separate units working together for joint purchasing to achieve discounts?

Group or co-op purchasing is an effective procurement method that allows multiple organizations, often within the same industry or region, to combine their purchasing power to negotiate better prices and discounts from suppliers. By working together, these separate entities can leverage their collective volumes to access lower prices that they may not be able to achieve independently. This method is particularly beneficial for smaller organizations that may not have the volume to negotiate favorable terms on their own.

The collaborative nature of co-op purchasing provides a solution for organizations looking to reduce costs while maintaining quality. These partnerships can lead to cost savings, increased efficiency in procurement processes, and enhanced access to a wider range of products and services. This method is widely regarded as a strategic approach in supply chain management, fostering stronger relationships among participating organizations and suppliers alike.

In contrast, the other procurement methods listed have different characteristics and objectives. Prime vending refers to a single supplier agreement, formal competitive bid buying involves a structured bidding process for specific contracts, and centralized purchasing typically signifies a single department making all purchasing decisions for an entire organization. Each of these methods serves a different purpose, whereas group/co-op purchasing emphasizes collaboration among various units to maximize savings.