The Obama Foundation’s economic development partner, Emerald South Economic Development Collaborative, on Thursday launched a program that aims to let small businesses collectively negotiate better terms for vendor services such as waste hauling.
The Shared Purchasing Network gives businesses and organizations access to benefits typically reserved for larger counterparts that reduce operational and administrative costs. The program is initially offering waste hauling services, but Emerald South expects to add offerings such as insurance, security and natural gas in the coming months.
The program is free to join and available citywide, but Emerald South is focusing on raising awareness in Chicago’s historically under-resourced communities.
The Shared Purchasing Network helps “bring people together to unlock collective power, create real economic opportunities, and uplift the businesses and organizations that are vital to the South Side’s future,” Valerie Jarrett, CEO of the Obama Foundation, said in a news release.
Organizations in the network so far include retailer Silver Room and restaurant Bronzeville Winery; Hyde Park restaurant Chemistry; social impact and affordable housing organization The Renaissance Collaborative; and Peach’s Restaurant, the culinary partner of the Obama Presidential Center through Romes Joy Catering.
The Obama Foundation also plans to join the network to access services for the Obama Presidential Center, which opens in 2026.
Eric Williams, owner of Silver Room and Bronzeville Winery, said, “As a small business owner on the South Side, it can be tough to compete with larger companies when it comes to negotiating contracts. The Shared Purchasing Network gives us a real seat at the table — it’s a game-changer for cutting costs and making sure we’re getting the best deal possible.”
Oji Eggleston, executive director of The Renaissance Collaborative in Douglas, said, “The idea that small businesses can join forces and save money together just makes sense. I’m excited to see waste hauling is already included, which I believe will make a difference for my bottom line.”
The Shared Purchasing Network is managed in partnership with the Washington, D.C.,-based Community Purchasing Alliance, a network of cooperatives. It runs similar waste hauling programs in more than six states, including Maryland and Massachusetts. Nationwide, the Community Purchasing Alliance has 75 organizations participating in its waste programs.
“Savings vary by organization, but often they see a savings of 10%-20%, with some seeing as much as 50%. However, organizations sometimes join without savings because of the protective contract terms and the power of the group,” said Ghian Foreman, CEO of the Emerald South Economic Development Collaborative, which started in 2017.
Emerald South is planning to start with a target of 25 program members, with a goal of reaching 100. Waste hauling service will start in July, though timelines are flexible because organizations may have to wait until their current vendor contracts end.
By joining the network, Chicago organizations can negotiate better deals and contracts; reduce operational costs through bulk purchasing discounts; and lower administrative work through a program designed specifically for a Chicago-based market, said Emerald South.
“Managing vendor contracts and pricing has always taken time away from actually growing my business,” said Jasmine James, co-owner of Vendimax, a mobile phone kiosk business in Chicago. “With the Shared Purchasing Network, I finally have access to fair pricing and support — and I know I’m part of something that’s helping lift up the entire community.”