In the landscape of municipal operations, every dollar matters. Efficiency and cost-effectiveness are all paramount to successful operations. Procurement plays a crucial role in any municipality’s operational success, but it can also be a complex and time-consuming process. Procurement professionals are always seeking ways to optimize processes and achieve strategic advantages, all while balancing competing demands, budget considerations, supplier relations, administrative and regulatory efforts, and a range of other varying priorities. In recent years, group procurement has emerged as a strategic lever that organizations can utilize to optimize their procurement processes and gain better operational efficiency.
AMM and Canoe: Streamlining Procurement Efficiency
Group procurement combines the collective buying power of organizations with similar needs to create an economy of scale that benefits each participating member. By harnessing the collective buying strength of participating members, group procurement enhances the capacity of each member organization, allowing each to streamline operations, achieve cost savings, and enhance supplier relationships, regardless of size.
In Manitoba, the Association of Manitoba Municipalities and Canoe Procurement Group of Canada work together to bring the benefits of group procurement to municipalities and public sector organizations across the province. With over 5,000 members across Canada, Canoe maximizes the strength of its membership to transform how municipalities buy goods and services. Through Canoe, member organizations gain access to standing offer contracts and procurement programs for vital products and services that they need, from construction equipment to office suppliers and everything in between. Many municipalities in Manitoba have already used group procurement through Canoe to gain strategic advantages with their purchases.
Success Stories from Manitoba and Beyond
With group procurement continuing to gain more prominence as an effective procurement tool for municipalities and other public sector organizations, it is no surprise that AMM members are leveraging the benefits of Canoe programs and contracts for their procurement purposes. Some success stories of organizations using group procurement through Canoe include:
- Province of Manitoba: Since 2022, the provincial government has purchased 65 ambulances and two skid steers through Canoe, saving the equivalent of an additional skid steer. The provincial government also utilizes Canoe contracts for its office supplies.
- City of Steinbach: The city saved $90,000 on a crawler for its landfill, signed up for the Fleet Management Program, and continues to see savings through its use of Canoe contracts.
- Bookmobile – South Interlake Regional Library: While working on its Bookmobile project, the library utilized Canoe and AMM to navigate a complicated procurement process and access necessary supplies for the project from Canoe-approved suppliers.
- Manitoba Hydro: The crown corporation signed on to use Canoe contracts in 2023 and purchased over $1 million worth of equipment from suppliers.
- RM of Macdonald: The rural municipality made over $1.2 million worth of purchases in 2022 – 2023 utilizing Canoe contracts for best-value outcomes.
- Killarney-Turtle Mountain: The municipality purchased a fire truck through Canoe, leveraging Canoe’s buying power to get the most competitive pricing.
- Beyond Manitoba, the City of Lethbridge, Alberta, recently reported saving an estimated $1.5 million in 2023 by using group purchasing through Canoe to purchase items such as pavers, waste collection trucks, and technician overalls. Particularly impressive is the city’s estimation that it saved nearly $450,000 on the purchase of a single new fire truck by using Canoe contracts.
Group Procurement: More than just cost savings
Group procurement through Canoe is gaining a foothold across Canada as more organizations, rural and urban, large and small, seek to take advantage of standing offer contracts already tendered on their behalf to save administrative time, access preferential pricing, mitigate supply chain issues, and generally get more value for each procurement dollar spent. Municipalities and public sector organizations, including school divisions, airports, hospitals, fire departments, Indigenous communities, public libraries, and others, continue to leverage group procurement through Canoe to gain strategic advantages, including for:
- Procurement efficiency: By pre-tendering contracts on all members’ behalf, Canoe simplifies the procurement process, allowing you to focus on strategic decision-making rather than administrative tasks. Standardized contracts and pre-negotiated terms save time and effort.
- Cost savings: By aggregating demand, Canoe leverages its economy of scale to negotiate preferential pricing with suppliers that each organization can enjoy regardless of size.
- Trade compliance: Compliance with trade regulations and legal requirements is critical in procurement. Canoe works to ensure that all cooperative contracts align with relevant trade agreements, including the Canadian Free Trade Agreement (CFTA), the New West Partnership Trade Agreement (NWPTA), and the Canada-European Union Comprehensive Economic and Trade Agreement (CETA).
- Supplier access: Canoe’s extensive supplier network includes over 350 suppliers and an extensive network of local dealers. This network ensures access to high-quality products and services. Organizations are not limited to any single supplier and can choose the one that best suits their needs.
Final Thoughts
Group procurement is more than just cost savings; it’s a strategic partnership that amplifies your procurement capabilities. By embracing the collective buying power of group purchasing, you can elevate your organization’s procurement prowess. Beyond cost savings, Canoe provides exceptional customer service to its members through education on procurement best practices and trends, support with standing offer contracts, development of procurement programs, help with supplier communications, and solutions to other challenges unique to individual organizations.
For more information or to become a Canoe member, contact the Canoe Client Relations Manager for your region.
