Strategic Purchasing was established in 1985 when twelve inner Melbourne municipalities initiated joint purchasing arrangements for common use items in order to obtain a higher quality product at a better price through aggregated volumes.

The benefits of the Strategic Purchasing scheme were made available to other Victorian Councils in 1987 and progressively expanded into other markets, such as the tertiary education sector, and extended into other states.

Until 1992, the City of Melbourne administered the Strategic Purchasing scheme on behalf of its clients. In October 1992 the Minister for Local Government approved the establishment of Strategic Purchasing Ltd, a Public Company Limited by shares.

In April 1993, a prospectus was floated offering all "eligible persons" the opportunity to take up shares. Since that date Strategic Purchasing has operated as an independent not-for-profit public company. We are considered to be a local government entity and are audited by the Auditor General of Victoria.