How AMBA has grown over 10 years to one of Ireland’s largest merchant buying groups.

10 YEARS FROM A ROUND TABLE DISCUSSION TO ONE OF IRELAND’S LARGEST MERCHANT BUYING GROUPS

A round table discussion of six like-minded people ten years ago led to the formation of Allied Merchants Buying Association (AMBA). Today they are one of the largest merchant buying groups in Ireland. The simplicity of the mission, to make members more profitable, was core to these initial discussions with the five founding members. Fast forward ten years and this same mission, combined with the philosophy and culture of ‘together we achieve more’ underpins a group of 22 members with negotiated turnover in excess of 260 million Euros with partnered suppliers. Keith Giblin began working with the founding members in 2011 to form Allied Merchants Buying Association. He became CEO in 2014. We spoke to Keith about the formation of the group, and more importantly why there was a need for something different.

“In 2011, when the group was formed, the marketplace was highly competitive. We believed in a business model that would drive our aims of growing the market share of partnered suppliers while improving the net profitability of our members. This is still the model we use today. We wanted to collectively negotiate with partnered suppliers but maintain a low-cost base and allow members maintain their independence. Members would keep control of their businesses with the support of a member focussed group created to improve profitability through structured purchasing. We wanted to provide a structured and coordinated platform by leveraging collective negotiation power with suppliers on behalf of members with our commercial belief that we enable members and suppliers to achieve incomparable numbers by utilising our merchants and the quality of their stores. How we achieve our mission has evolved over the years, but this remains the core of any undertaking we engage in and is our principal purpose”.

“Since 2011 we have grown from five members with 15 stores to 22 members with 193 stores nationwide. Our growth strategy ensures that we grow by adding suitably qualified members that add turnover, volume and expertise to product categories across the range. New members join our group based on shared values and being a strategic fit for each other”. Speaking about the main functions of the group Keith continues: “There are two main core functions that have contributed to the success of the group: category management and the compliance of members in dealing with partnered suppliers”.

“We negotiated ¤22m purchases with approved suppliers in 2012 and this year our negotiated purchases will be in excess of ¤260m. These are excellent numbers but we also believe operating costs are a measure that are just as important. As an organisation we are committed to running a lean yet highly effective organisation”.

“We have seen huge improvements in the process of our Category Management, and we now have 30 Category Managers across 10 Categories. Our structure remains that our members make up our Category Management Committees. Because members are involved in Category Management, the people negotiating terms on behalf of Allied Merchants Buying Association are improving terms for their own businesses and for all other members.

Our compliance rate in purchasing from partnered suppliers for 2020 was 95%, which is significant in that members see the benefit in supporting our group deals as do suppliers. We have continually increased the return to members year on year.

“Two further elements we embrace are preservation of our core values and always stimulating progress. We do this by committing to challenging goals and projects which challenge our efforts, ensuring we are always in a process of relentless self-improvement”.

Over the past ten years many things have changed including the introduction of Brexit, a Pandemic that no-one could plan for, escalating prices, shipping issues, shortages of raw materials and increasing pressure on the supply chain. Allied Merchants strongly believe that now, more than ever it is vitally important to continue to work together as a group and work even closer with partnered suppliers.

Looking forward to the next ten years Keith commented “All our members have an influential voice and play an integral role in ensuring the long-term growth and success of Allied Merchants Buying Association”.

“By building on our success we will continue to affirm our progressive approach, dedication and strategic intent as a leading low cost highly professional group with strategically placed members that work with partnered suppliers. Allied Merchants Buying Association is a group we are all proud to be part of”.