The document presents findings from an empirical survey on success factors for managing horizontal purchasing groups. It identifies 19 potential success factors and analyzes their importance for group success. Key findings include: - 12 success factors were identified as statistically significant, including communication, member cooperation, commitment and support, common objectives, and fair allocation of savings. - Groups were most successful when there was no need to enforce cooperation, members contributed sufficient and unique knowledge, and representatives were not often changed. - Fair allocation of savings between members was also important for success, though difficult to achieve. Equal allocation of price savings combined with equal or proportional allocation of costs led to the highest success rates.

1. Success factors for managing horizontal purchasing groups: an empirical survey Presenter Fredo Schotanus Co-authors Jan Telgen Luitzen de Boer University of Twente Initiative of Purchasing Studies

2. Definitions Buyer Buyer Buyer Supplier vertical alliance horizontal purchasing group Supplier Supplier Introduction 1 / 19

3. An example of a purchasing group Buyer B Buyer C Buyer A x 4 Introduction 2 / 19

10. Activities Group with x members O 1 … Properties: … … Overall performance Advantages Disadvantages Scores: … … Potential success factors Scores: … … O x Method The survey 9 / 19

18. Combinations of allocation methods EP + Equal Amount cost method Findings and discussion 17 / 19 Equal Price (EP) + no formal cost method EP + Proportional cost method total % uniformity of contr. uniformity of vol. successful % 27% 2,7 2,5 76% 24% 2,3 1,9 79% 26% 2,7 2,2 90%