Credit Unions have Purchasing Power

Marvin Garland is the Chief Operating Officer for LEVERAGE, the LSCU Service Corporation. by: Marvin Garland, Chief Operating Officer, LEVERAGE, the LSCU Service Corporation

The word collaboration is probably the most overused word among credit unions. We talk about it, invest time thinking about it, but few actually follow through with it. Today, consumers and our members are bombarded with new ways to conduct their banking from mobile applications, p2p, and online banking. This fast-paced change of new products on the market makes it extremely tough for credit unions to not only make the services available but also manage the process of selecting and managing the suppliers that provide these services. Nontraditional competitors like Google, Wal-Mart, and Target are emerging every day to compete in the transaction business.

Group purchasing is a proven process that can assist credit unions in utilizing their purchasing power to engage suppliers, manage their needs, and produce real savings back to the credit union. Group purchasing makes total sense because three credit unions that are looking to buy computers will get a better price than what each would get individually. Instead of each credit union researching the latest computer technology, sending out RFPs, performing due diligence, and then negotiating what is their best price, they can engage in group purchasing where the leg work is done for you.

One of the hidden values in combining your spend into a group is that it allows the credit union to utilize experts that know what the right specifications should be, what the market price is, and cut through the sales materials to get what you need and only what you need. Many credit unions think they can negotiate the best prices with their vendors but when credit unions come together for a group purchase, the savings are almost always more than the negotiator could have gotten. Most vendors actually prefer to work with larger buying groups because they also save money.

It may not grab headlines in the office that you saved money on computer purchases or janitorial services, but it will show up at the end of the month when the financials come out. A good example of this type of collaboration is New York Yankees shortstop Derek Jeter. He surpassed 3,000 hits last summer. When you look at his 3,000 hits, you don’t realize he had 2,200 singles. That’s 75 percent of his hits. Most of those singles are not memorable, but they added up to something few players have ever accomplished. It’s the same with credit union collaboration on purchasing. It may not be that one big purchase that’s solves all your issues but looking at each spend will make a difference.

The next time a contract comes up at your credit union, think about the price you are getting for that service and how much you would like to save. Working with other credit unions that need a similar product will show you the power your credit union has.
Marvin Garland is the Chief Operating Officer for LEVERAGE, the LSCU Service Corporation. LEVERAGE is a business services provider that has a revolutionary ePurchasing platform and a contract management system in Ventelligence, automated compliance execution through ComplyTrac, as well as with many other solutions. Visit myleverage.com to learn more about how credit unions have leverage in the marketplace. You can follow LEVERAGE on Twitter or LinkedIn.

Marvin Garland

Marvin Garland

Marvin Garland is the Chief Operating Officer for LEVERAGE, the LSCU Service Corporation. LEVERAGE is a business services provider that has a revolutionary ePurchasing platform and a contract management system ... Web: www.myleverage.com Details