Businesses, associations, networks, and public institutions all need to buy goods. They procure commodities for production, resale, and their own consumption.
The same products are often ordered by many different buyers at the same time. If they pooled their orders, coordinating across businesses, networks, organizations, and departments, they could achieve significant volume discounts.
Pooling also means greater negotiating power, which can lead to better conditions for production and delivery, as well as reducing or eliminating the costs connected with keeping goods in stock.