Every year, multiple CoVest categories come up for renewal as contract expiration dates come into play. For 2016, three indirect spend category contracts are on review due to their approaching expiration: corrugated, lab supplies and bearings and power transmissions.
Their review / sourcing timeline and expiration dates are below.
Depending on the member’s feedback, CoVest may enter into direct negotiations with the supplier to extend the contract or put together an RFP and test the market more formally. CoVest reaches out to its members six to nine months prior to expiration. During this exchange, CoVest obtains feedback regarding the current supplier and assess the need to take the category to market. Through past experiences, we found that new members find it attractive to participate in CoVest RFPs as they are able to participate in a leveraged high spend RFP at little to no ‘out of pocket’ expense.
In addition to reviewing these three categories, CoVest will be creating at least two new categories in 2017. The new categories are Pipes, Valves, and Fittings (PVF) and Stretch Wrap / Shrink Wrap. PVF is a natural extension to our MRO category and Stretch Wrap and Shrink Wrap will augment our Packaging category.
For a detailed overview of the terms of engagement and our sourcing methodology, please contact CoVest directly. We invite you to learn more, kick the tires a little and then determine if this opportunity is in your plans for 2016.
CoVest Sourcing Network is leading a change in the traditional sourcing model and is looking for progressive thinking companies to join us in the transformation.