CoVest is a large company group purchasing organization with deep analytics and experienced indirect category management. We frequently work with global, production-based Fortune 1000 companies with a minimum revenue of $2 Billion. Our leverage extends far beyond simple volume and spans the supply chain and market intelligence. With our strategic procurement services and indirect spend management expertise, CoVest serves as an extension of your procurement team.
We offer two cost free, no commitment paths to engage our team and explore the model. There are no tricks or hidden elements to our engagement processes. Our goal is to gather all relative data and category incentives, reprice using CoVest agreements and present the opportunity. Our belief is when presented with the right business case, joining CoVest and adopting our agreements is the clear choice.
Getting Started – How the CoVest GPO Model Works
As a first step, CoVest will sign a prospect’s NDA to allow for a protected data share. Next, based on previous conversations, category interest, availability of data and scope of review, one of two engagement paths will begin:
• Select category to analyze
• Share 12-months spend data
• Learn savings opportunity
Select this path…
for single category review where speed to savings is needed.
The Details
An expanded look at our opportunity analysis and process
Step 1: Confirm The Opportunity
Individual Category Review
• We work with your team to develop the approach for determining the price opportunity for selected category of interest. This is not the typical bid process, but simply a comparison of your current pricing to the pre-negotiated pricing with our supply partners. CoVest does not share your pricing with our supply partner to maintain the integrity of the process and conform to the company’s non-disclosure practices and contract provisions with your current supplier.
• We request all spend detail in the category, conduct the savings analysis and prepare a summary report that is presented to you.
• This is at no cost or obligation.
Step 2: Membership Process
You decide to become a CoVest member and select which categories you wish to initially participate in
• You sign a short membership agreement to access our various supplier agreements for each selected category
• You sign a direct purchaser agreement with the category supplier
Step 3: Implement
CoVest facilitates development and execution of an implementation plan, including:
• Nominating an implementation team
• Kick-off meetings with key stakeholders
• Selecting and sequencing of implementation locations
• Transitioning with incumbent suppliers to ensure continuity of supply
• Developing a detailed core list of pricing, ordering rules and tailored catalogs
• Integrating with your e-Procurement systems
• Training in the use of supplier on-line ordering systems
• Share 12-months, spend by vendor, GL report
• CoVest to rationalize supplier names, research core business, bucket spend by CoVest and non-CoVest categories
• Learn spend by category, by vendor, by location
• Prioritize category opportunities
• Select vendors to gather data from
• Learn savings opportunity
Select this path…
for a MRO category opportunity assessment where spend totals and detailed data is challenging to obtain.
The Details
An expanded look at our opportunity analysis and process
Step 1: Confirm The Opportunity
Indirect Spend Categorization
The CoVest Indirect Spend Categorization process provides a road map to category opportunities.
• So often we hear, “If only I had the data, or knew what I bought or knew who I bought it from.” Securing accurate line item data is hard. Not knowing where to look makes it even harder!
• Pulling a spend by vendor report from your system is easy. With these simple numbers, CoVest will return to you a list of rationalized supplier names, your spend by category and by supplier. With this information, you can prioritize the category opportunities and know which suppliers to request data from.
• Following the road map to consolidated category spend, purchased through CoVest leveraged agreements, leads to more spend under management generating more savings.
Step 2: Membership Process
You decide to become a CoVest Member and select which categories you wish to initially participate in
• You sign a short membership agreement to access our various supplier agreements for each selected category
• You sign a direct purchaser agreement with the category supplier
Step 3: Implement
CoVest facilitates development and execution of an implementation plan, including:
• Nominating an implementation team
• Kick-off meetings with key stakeholders
• Selecting and sequencing of implementation locations
• Transitioning with incumbent suppliers to ensure continuity of supply
• Developing a detailed core list of pricing, ordering rules and tailored catalogs
• Integrating with your e-Procurement systems
• Training in the use of supplier on-line ordering systems
Start the Conversation
Ready to learn how your company can benefit from a CoVest membership? Call us at 216.325.5128 or complete the following prospective membership form below to schedule a call time that is best for you.
