Many procurement professionals are familiar with the ubiquitous term, group purchasing organization. However, the connotation isn’t always positive when there is little account management, required spend commitments or the relationship is inherited from a predecessor. As a result, many indirect category buyers are left dissatisfied with a GPO, not realizing the full benefits of a true partnership with the right GPO model. So how does a top group purchasing organization work?
Some questions to consider when evaluating your current GPO are:
- What value does my GPO partner provide today?
- Have all the savings been captured in year one of the relationship?
- How are we measuring success beyond year one?
- Are sites still complying with the program?
These strategic questions can help guide your decision-making process and the effectiveness of your GPO program. Look for a GPO partner who can address these questions and provide a long-term partnership with a hands-on approach.
The CoVest Difference
The CoVest difference starts with who we are and how we work together. CoVest is a focused
Read More: Can a GPO Help Me Manage Indirect Categories More Effectively?
The Value of CoVest
With a spotlight on Resources, Leverage and Analytics, CoVest has built a process that not only benefits individual Members and their savings initiatives, but together, enhances the buying power of the group as a whole.
Resources
Simply put, we are an extension of your team! Many of our Members have been with us for years (some relationships have held strong for well over a decade!) so our understanding of your business, cost saving initiatives and future corporate directives positions our partnership for continued success. With these benefits to Members, how do we drive savings for you beyond year one?
Leverage
Active category management, manufacturer cost support, and compliance (not everyone’s favorite word) are three areas we consistently focus on to help Members succeed. Category management by your GPO is critical. Many groups simply state, “we have the largest [___] program, therefore you get the best price,” but not all leverage is created equal! CoVest actively manages group core and member core lists annually or bi-annually to make sure your items are getting the best price possible.
Through our category management process, we then generate quarterly savings reports with line-item details showing actual, reportable
Read More: Why Savings Reports Should Not Be Neglected
Analytics
Compliance can be difficult to measure, but with CoVest’s monthly compliance reporting, you have insight into site-level program adoption. CoVest provides implementation assistance in conjunction with our supplier partners on new and even existing categories.
Join CoVest
For more information on CoVest, our category offering, review process and membership benefits, please contact CoVest’s Member Engagement Management Team at Memteam@covest.com
Whitepaper Download: Managing MRO With a GPO