TL;DR: There may be an opportunity to save money on things like toilet paper through group purchasing … but it ultimately comes down to your brewery’s buying habits and preferences. Please take a moment to fill out this survey so we can better understand the landscape.

Let’s start with the obvious: our industry operates on tight margins. Even small savings on regularly used products can make a meaningful impact. Members have been raising the potential of leveraging their collective buying power to unlock discounts since I started at the BA in 2016.

Some industries (such as healthcare) use group purchasing to access bulk rates, even on smaller orders. A group purchasing organization (GPO) negotiates pricing based on the combined purchasing power of its members. A single small company might not qualify for the lowest rate, but hundreds of small companies, working together, can.

This approach clearly has benefits, so why hasn’t the BA launched a program like this for its members? The short answer: it’s complicated, especially when trying to serve 5,000 locations across all 50 states. That said, if you have thoughts on GPOs, please send them my way.

There are groups already serving our industry. The Independent Brewers Alliance and Beverage Federation have been active for years. A newer group, the Craft Brewery Purchasing Organization (CBPO), is run by Eric Ruta of Magnify Brewing Company in New Jersey.

Of course, group purchasing organizations aren’t the only way to reduce costs. For example, coordinating raw material shipments can lower freight expenses. Another approach is standardizing commonly used products so more companies are buying the same SKUs—which brings us back to toilet paper.

A logistics company whose primary goal is to work with our industry recently reached out. It believes there may be real savings opportunities through coordinated logistics. Specifically, if members are willing to order items such as toilet paper, paper towels, and common cleaning products through a shared system, we may be able to unlock savings.

Programs like this can sound great on paper, but whether they work in practice depends on your preferences and purchasing behavior.

Should we explore this concept further? Please fill out the survey. Your input will help us better understand the current landscape and any potential savings.