Developing Collaborative Bargaining and Supplier Aggregation Framework to Improve Negotiation Power of a Micro Supply Chain

Abstract

Micro-businesses in developing economies often suffer from low negotiation power, high procurement costs, and fragmented supply chain operations that limit their competitiveness. This research investigates the effectiveness of a Collaborative Bargaining and Supplier Aggregation Framework in improving negotiation power, cost efficiency, and profitability within micro supply chains. A mixed-method case study approach was applied to a Bangladesh-based online micro-business over a twelve-month period, divided into pre- and post-implementation phases. Data were collected from six participating micro-enterprises sourcing products from three major wholesale markets.

The framework integrated supplier aggregation, collective bargaining, and shared logistics through a digital platform to enable bulk procurement and improved supplier relationships. Statistical analysis using a paired left-tailed t-test confirmed a significant improvement in cost negotiation margins (t = –17.72, p < 0.05), leading to measurable performance gains. After implementation, average unit costs decreased by 6–11%, procurement volumes rose by 45– 60%, and lead times were reduced by up to 38%. Profit margins increased by 8% on average, and sales revenues grew as high as 77%, driven by better supplier terms and increased customer satisfaction.

The study demonstrates that technology-enabled collaboration can empower micro- entrepreneurs to overcome structural market disadvantages and achieve economies of scale. While coordination complexity, limited digital adoption, and supplier resistance remain challenges, the findings provide a strong foundation for policymakers, e-commerce platforms, and entrepreneurs seeking to enhance micro-business competitiveness through collective supply chain strategies.