The word is Latin, derived from "con" (together) &"sors" (fate). In commercial industries that rely on technology development, a consortium can be a way to share cost of research & development, a consortium can be a way to share cost of research & development among several companies that would benefit from the resulting technology. Consortium can also be commercial in nature. One example would be the company, Airbus, which was originally a consortium of European aerospace manufacturers. It eventually evolved in a standalone company, Airbus, SAS.
An industrial research & development consortium has much different focus. Here, resources are pooled to study technology improvements that will benefit all the participants. Often, this entails participants paying a small fee to a separate entity, which manages the consortium & the associated R&D effort. Regular meetings ensure that the intent of participants is maintained, & that all stakeholders are updated on progress, agree on any changes in direction that may be suggested by interim results.
Companies join consortium because they pool resources with partners & competitors to leverage technology development that will benefit their businesses. Consortium members are generally given licenses to use the technology or know-how that was developed with the group funds.
How it works
The basic process of consortium purchasing typically involves:
• Formation: A group of Candle Manufacturers or entrepreneurs forms a consortium, often facilitated by a consortium manage.
• Needs assessment: The consortium members identify common needs & priorities.
• Purchasing agreement: The consortium buys a candle industrial machinery which members have come to a point of purchasing agreement.
• Supplier selection: The consortium conducts a joint tendering process to select supplier.
• Purchase made: The consortium has managed to buy a candle industrial machinery which transaction has been made between a candle industrial supplier machinery on behalf of its members.