We support you for supporting us.
In order to clearly appreciate the commitment you can expect from partnering with IDI, one needs to clearly understand the differences between a “buying group” and a “purchasing co-operative”.
Buying groups are privately held, profit-driven business models, often owned and operated by entities from outside of the group’s industry. While buying groups benefit their members by passing a portion of the vendor incentives through to their members, the residual profits of the group are retained by the private entity, effectively removing those funds from the supply channel. Buying group members typically pay very nominal fees to join the group, which often reflects the limited level of support they display towards the group’s vendors.
IDI is not a “buying group”. We are a “purchasing co-operative”. Purchasing co-operatives are owned by the companies that comprise the group; thus, the “members” of the purchasing co-operative are actually its “shareholders”. All of the initiatives that you will learn about in this brochure – e-commerce, the distribution centre, print/electronic catalogues – have been funded by IDI’s shareholders, not our vendors. Thus, purchasing co-operatives are much more flexible business models than buying groups, offering more channels for vendors to engage with shareholders. And the shareholders are in turn much more engaged than a buying group’s members. At the end of every year, the profits from the cooperative are either re-invested into on-going operations the following year, or they are distributed to the shareholders – 100% of the funds remain in the supply channel, where they belong.
IDI shareholders are financially and philosophically committed to the success of IDI. They are continually looking for ways to divert more of their purchases through our vendors because they have complete visibility into each vendor’s contributions to their business through IDI. While buying groups pass along a “diluted” portion of the vendor’s financial incentives to their members, IDI remits 100% of each vendor’s contributions directly to the shareholders that earned them.
What are the tangible results of this commitment? IDI shareholders are currently allocating between 30-35% of the co-operative’s total spend through our approved list of vendors. This is a closelymeasured critical success factor of the co-operative – initiatives are put in place annually to drive higher shareholder participation levels.
By partnering with IDI, our shareholders will hold you in a higher regard, as your commitment to their co-operative will be reciprocated with a deeper commitment from them towards your company!