Digital Cooperative will be a digital platform where Small to Medium Enterprises (SMEs) can group together as co-ops and have the buying and bargaining power of a large enterprise (i.e. Coles or Safeway), discuss and rate suppliers and determine the best price for goods and services and conduct transactions online. It will also incorporate a discussion forum for SMEs to share industry information as well as a transaction application where cooperatives can bargain with suppliers for the best price on products and services.
- Cooperative: SMEs will be able to form buying blocks, or buying conglomerates, to achieve economies of scale and reduce the price of input products from suppliers.
- Economies of Scale for SMEs: With SMEs in similar industries and geographic regions working together they can form buying blocks and get discounted prices for inputs from suppliers.
- Digital Cooperative will enable SMEs to subscribe, find businesses with synergies in their local area, and work out how they can reduce the cost of doing business together by working together.
- Suppliers: They can benefit by delivering larger orders to SME conglomerates instead of several smaller trips, thus saving on distribution costs. SME’s will have the ability to rate suppliers on their level of service and this can help build their brand/reputation and increase their potential market. Small suppliers, such as microbreweries, will be able to form digital co-ops to form larger trading blocks and have increased market power and bargaining power against their larger competitors in the industry.