Glossary›Demand pooling
Demand pooling
In demand pooling, the demand of several sites or facilities for the same article is combined into one quantity, to reach better terms and to run fewer single orders.
What it means
The precondition is that the facilities mean the same article: same specification, same unit. Then quantities can be added up, requested together and fixed in a framework agreement. Purchasing groups do this for their members; within a group of facilities, pooling across sites pays off as well.
Not only quantities are pooled but also requests: a supplier receives one request with a specification instead of many single ones.
Why it matters in procurement
Larger quantities negotiate better, and suppliers save effort they would otherwise price in. For the facilities, pooling also means fewer variants, fewer order transactions and a solid number in the negotiation.
How SANOVIO works with it
SANOVIO makes demand comparable through the shared article master, shows quantities per facility and in total, and sends pooled requests to audited manufacturers.