28. What
Is
Demand
Aggrega0on?
IN THE MOST SIMPLE TERMS… USING YOUR COLLECTIVE BUYING POWER TO GET THE BEST
PRICE. IN OTHER WORDS, USING THE ECONOMIES OF SCALE TO REDUCE YOUR COST AND
INCREASE YOUR ROI"
GATHER INFORMATION DEVELOPMENT OF SEND OUT FOR FINALIZE PRODUCT
FROM STAKEHOLDERS PRODUCT RANGE FEEDBACK AND REVIEW RANGE
FULFILMENT OF ORDER
FINAL PRICING - MORE
QUANTITY LESS PRICE STAKEHOLDERS SUBMIT
INTEREST
SETUP CORE PRODUCT
WITH PRICE AND LEAD
FOR ALL TIME
WHEN MULTIPLE LOCATIONS ARE BUYING SIMILAR PRODUCTS AND/OR
SERVICES, DEMAND AGGREGATION OFFERS A GREAT WIN-WIN OPPORTUNITY
FOR BUYERS AND SUPPLIERS. BUYING ORGANIZATIONS BENEFIT FROM LOWER
COSTS THROUGH THE ECONOMIES OF SCALE ACHIEVED BY LEVERAGING
PURCHASING VOLUME, DEALING WITH FEWER SUPPLIERS, AND STANDARDIZING
ON FEWER PARTS. !
29. DEMAND
AGGREGATION
GRAPH
AVERAGE COST WHEN QTY INCREASES TO QTY2 COST REDUCES TO COST1
LRAC
COST
COST 1
0
QTY QTY 2 OUTPUT
30. CURRENT
BUYING
MODELS
FOR
SPOONS
VENUES ! ! !Units ! !Cost ! !Total !!
"
THE STAR " " "20000 " "$0.80 " "$16,000"
"
JUPITERS GC " " "10000 " "$1.20 " "$12,000"
"
TREASURY " " " 8000 " "$1.40 " "$11,200"
"
JUPITERS TV " " " 5000 " "$1.50 " " $7,500"
"
GC CONVENTION " " 5000 " "$1.50 " " $7,500"
"
TOWNSVILLE ENT " " 4000 " "$1.60 " " $6,400"
"
"
TOTAL ! ! !Qty !52,000 Av $1.33 ! Total $60,600!
"
ü Venues buying independently are paying a high unit cost as sometimes their
quantities do not meet the Minimum Order Quantity (MOQ) requirements of the
suppliers"
31. DEMAND
AGGREGATION
MODEL
FOR
THE
SAME
SPOONS
VENUES ! ! !Units ! !Cost ! !Total !!
"
THE STAR " " "20000 " "$0.50 " "$16,000"
"
JUPITERS GC " " "10000 " "$0.50 " "$12,000"
"
TREASURY " " " 8000 " "$0.50 " "$11,200"
"
JUPITERS TV " " " 5000 " "$0.50 " " $7,500"
"
GC CONVENTION " " 5000 " "$0.50 " " $7,500"
"
TOWNSVILLE ENT " " 4000 " "$0.50 " " $6,400"
"
"
TOTAL ! ! !Qty !52,000 Av $0.50 ! Total $26,000!
"
Final pricing obtained for 52K Spoons at $0.50 ea saving of $34,600"
NB: all venues, quantities and pricing are examples only
32. Maximize purchasing power by providing visibility into enterprise-wide
demand and automatically combining multiple purchase requests .
MING-GLOBAL
