The Future of Aged Care Procurement: Why Group Buying is Changing the Game

Traditional procurement models often involve one-on-one negotiations between a facility and multiple suppliers. While this works in theory, in practice it can lead to inconsistent pricing, limited access to stock, and wasted time for managers who are already stretched thin. Group buying is transforming this model. By pooling the purchasing needs of several facilities, organisations can negotiate better deals, reduce costs, and ensure more reliable supply chains. For suppliers, it means bulk, consistent orders with less administrative hassle. For facilities, it translates into savings that can be reinvested into staff training, resident care, or facility upgrades. Beyond cost savings, group buying also offers stability. In times of supply shortages, facilities that are part of a group buying arrangement often have priority access to stock. This was particularly evident during the COVID-19 pandemic, when demand for PPE and hygiene supplies skyrocketed. Facilities within collective procurement networks fared better than those negotiating alone. Looking forward, aged care marketplaces that enable group buying will play a central role in the industry. They not only simplify procurement but also introduce transparency, allowing facilities to compare suppliers and track performance. For an industry where efficiency and quality matter equally, group buying is more than a trend — it’s the future of aged care procurement.