Should an organisation join a purchasing group?

Purpose - The article deals with issues such as the size of a purchasing group, the types of benefits aimed for, and the real beneficiaries of purchasing groups. Design/methodology/approach - The observations are based on the literature, as well as on interviews, mostly with Canadian and US health-care managers. Findings - Although often associated with the public sector, purchasing groups are also an alternative considered more and more by managers of the private sector. A purchasing group increases volume consolidation, making it possible to have only one negotiation, in order to increase the purchasing group members' power vis-a-vis that of its suppliers. However, a purchasing group also constitutes an additional link in the supply chain and its objectives could go contrary to those of some of its members. This is why organisations considering joining a purchasing group should analyse this option strategically, in order to assess correctly the potential long-term benefits. Originality/value - This article suggests key questions and an analytical framework to help managers assess the potential benefits and drawbacks of joining a purchase group.