What happens when two of the most successful purchasing cooperatives in the dairy industry work together on creating new solutions? Its members see greater benefits than ever before.
Allied Purchasing Co. and QCS Purchasing LLC are not-for-profit member-owned purchasing cooperatives focused on providing the best supply chain solutions to its members in the form of value, quality and service. As member-owners in a not-for-profit, customers can be confident that all savings after expenses are passed on in the form of pricing discounts or rebates. Combined, the two companies manage a total spend approaching $700 million across their 150-plus supplier relationships.
How the companies deliver value
Together, Allied and QCS have significant buying leverage with their supply partners in packaging, ingredients, plant operations, and logistics and fleet. Allied and QCS are an extension of member companies’ procurement teams, providing strategic sourcing specialists with deep category knowledge.
The companies’ team can introduce members to innovative supplier offerings that help them become more effective in their respective businesses. Allied and QCS can place, manage and follow up on purchase orders to help minimize members’ time spent on order management. Regular communication provides industry and market intelligence to help members make the best sourcing decisions for their organizations.
The companies provide members with a category leader who knows their given area of spend better than the suppliers themselves. The companies’ category leaders will sit with members on their side of the table to understand current contracts, specifications, costs and suppliers to develop a strategy that allows members to capture the most competitive total cost available in the market. Instead of focusing on just the item price, the companies’ category leaders will help members understand all the sourcing levers available to maximize the category value, including order sizes, material specifications, order frequencies and even the suppliers with which members are working.
Active programs include:
- Maintenance, repair and operating supplies
- Orange juice
Staying power for members
Although lower pricing is often the primary motive, members stay with Allied and QCS for many other reasons, including:
- The companies provide backup supply security in the event members need another qualified supplier.
- The companies’ team helps foster innovation with members by bringing them new supply partners and offerings that help members stay ahead of their competition.
- The companies have experienced category experts who provide industry and market intelligence that helps members make the best-informed decisions possible.
Allied Purchasing Co. is the oldest dairy purchasing cooperative in the United States. Incorporated as a member-owned not-for-profit purchasing organization, the company supports some 1,600 food and beverage manufacturing locations. Prospective members may join Allied by purchasing a share of stock. This investment provides the independent business an opportunity to lower cost, gain purchasing power and compete as a larger entity while concentrating on its core business.
QCS Purchasing LLC is a member-owned not-for-profit supply-chain solutions provider for the food and beverage industry. More than 150 national supply-partners provide solutions in a wide variety of categories. The company has nearly 500 member companies, and since 2005, the number of purchases QCS Purchasing manages has continually increased year over year.