Micheline J Naude, Rodney T Naude
Abstract
A gap exists in literature that addresses the importance of horizontal collaboration in purchasing for wine makers. This paper explores the possibility of developing a purchasing consortium model for South African wine producers for common, non-strategic, low value products and services.
The study is exploratory and a qualitative approach was adopted. Data was collected through interviews with wine producers. The findings indicated that wine producers experience poor service, long delivery lead times and poor quality from their suppliers of boxes, labels and bottles. A purchasing consortium offers not only savings on purchase prices, but higher quality, as well as providing price and service benefits through collaborative purchasing, the sharing of best purchasing practice through networking with members and the reduction of duplication in purchasing activities.
A purchasing consortium model is recommended and will be beneficial within the South African context, as a model to support horizontal collaboration. The implementation of the model could improve quality, decrease stock outs, allow for purchasing a larger number of common products and ultimately reduce material and purchasing costs. It is expected that the proposed framework will contribute to the existing body of knowledge on horizontal collaboration in purchasing.