IADS Exclusive - The long sought-after opportunity of collaborative procurement

IADS Exclusive April 2022 Dr. Christopher Knee

Teaming up and buying together in order to reach scale economies seems like a natural step for international department stores, since the goal of these large retail organisations has always been to reach optimization in terms of procurement to maximize margins. In addition, since they are usually operating on national markets, an international collaboration seems logical.

This is the reason why international retail associations, such as the IADS, have explored the subject for years, trying to articulate a working solution for their members, be it at the material level for private labels, at the product or label level for national brands, or even by suggesting to team up to buy or create from scratch shared brands which could be seen as private labels for a group of stores. 

We are reviewing in this paper a series of options drafted by the IADS dating back to 2001, in order to draw some conclusions and put them in comparison with what we know today. 

IADS provides its members with a weekly in-depth analysis on retail-oriented topics. This is an example of the themes the Association regularly addresses, and the topic of an article from the IADS members-only newsletter date 20 April 2022.

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