[Jewelry making - Article 01567] - Re: [Orchid] Jewelry Co-Operatives?

[Rasesh Chasmawala]

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    This is a very interesting question. Actually, we have mooted this
    idea for some time now. 

    The rationale for cooperatives is as follows: 

    The stone prices are decided by mining conglomerates such as De
    Beers. Thus, there is a limit to which discounts can be offered.
    Prices depend on regularity of the orders and quantities play a
    significant role. 

    Small buyers can never hope to buy at the same prices that large
    buyers manage. However, if many small buyers unite, they CAN wield
    considerable clout, can't they? Therefore, we have said that buyer
    alliances are the need of the hour. 

    Besides, buyer alliances are being favored all over the world by
    small and medium enterprises. The buyers get better prices and the
    manufacturers get higher volumes which is a pre-requisite for
    efficient production and buying of raw materials. This creates a
    win-win situation for both, the buyers and the manufacturer. 

    Else, the only solution for a small enterprise would be to buy from
    a large manufacturer who MAY do them a favor by quoting good prices.
    However, the latter are usually reluctant to deal with small buyers
    due to production inefficiencies and also due to the fact that they
    are guaranteed large volumes by the bulk buyers. Thus, there is a
    very real reason why buyer alliances are being favored by small and
    medium enterprises all over the world. 

    Next, please check out the links,

    http://www.rediff.com/money/2005/sep/23spec.htm and
    http://en.wikipedia.org/wiki/Amul. T

    hese links talk about the way in which impoverished and illiterate
    dairy farmers in some of the most backward regions of India came
    together to form one of the largest cooperative movements in the
    world. As a result, the farmers got more control that, till then, was
    in the hands of the traders and middlemen. 

    Also, buyer/supplier alliances are gradually becoming popular all
    over the world. Please search for 'buyer alliances' on Google and you
    will see a lot of links that mention the benefits of such a strategy.

    http://jobfunctions.bnet.com/whitepaper.aspx?docid=56934 and
    http://www.yorku.ca/mbiehl/files/Biehl_AOR_V145N1_2006_15-34.pdf.

    These articles mention the importance of buyer/supplier alliances for
    better pricing, supply management, logistics' support and many other
    benefits. 

Just my 2 cents.

Rasesh
Mumbai, India.
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