Collective bulk buying for rugby club: A report for the Otago Rugby Football Union

Abstract

The purpose of this report was to investigate the potential for rugby clubs in the Otago Region to purchase their major expenditure commodities collectively. The goal is to realise increasingly competitive procurement arrangements, through the utilisation of their collective strength. This report finds that opportunities in the market exist for a collective bulk-buying scheme to operate. A number of potential scheme options in relation to bulk-buying are identified and outlined. Key elements of all proposed schemes are identified; described; and the advantages and disadvantages of each are presented. Key requirements necessary for such schemes to operate are identified. A collective bulk-buying scheme administered exclusively by the Otago Rugby Football Union (ORFU) is recommended. The report identifies potential barriers to the establishment and ongoing operation of such a scheme, including those presented by the current state of the relationship between the ORFU and clubs, with particular attention paid to the areas of communication and trust.