Mission: to build a global category approach at the request of one of our members.
With our member's total spend in the US and Europe exceeding $3 million annually, they were seeking savings that expanded over the span of many borders.
Mission: to build a global category approach at the request of one of our members.
With our member's total spend in the US and Europe exceeding $3 million annually, they were seeking savings that expanded over the span of many borders.
Indirect spend has found itself on the back burner of many industries savings opportunities. However, there is plenty of savings to be had if you know how to manage it.
What is Total Cost of Ownership (TCO) and how does it pertain to group purchasing organizations (GPO)? Savings don't have to end after your initial purchase.
Mission: Assist member in the creation of centralized contracts for additional categories.
A current CoVest member has already tackled some of the more straightforward categories in their path towards centralized procurement. Their next goal is to expand their indirect categories and drive compliance.
It is no simple task to generate savings in a high SKU category. It is even more difficult to create savings that will last. The CoVest whitepaper, on high SKU count in indirect categories, will start you on your journey to optimize pricing.
Leverage within a group purchasing organization (GPO) is meant to benefit all parties, but how exactly is it effecting the members? Members gain from GPO leverage and here's why:
As a verb, to leverage means to gain an advantage through the use of a tool. For example, you can more easily lift a heavy object with a lever than you can lift it unaided. That is what is happening in a group purchasing organization (GPO). A company, that uses a GPO as a tool, can be seen as part of a bigger organization and thus gain better pricings, service and terms than it could have on its own.
Mission: Build a new member's first company-wide category contract.
The new member is moving from a facility level sourcing focus to a centralized category management approach. They are aiming to decrease the many suppliers they have for each sub-category.
Many companies are failing to realize that significant cost savings are in sectors NOT directly related to sales and services. Indirect spend is commonly overlooked and that is where companies are missing opportunities to improve earnings.
