US Building Products Manufacturer

By: CovestAdmin
April 23, 2021

Indirect Category Expansion



A current member that had tackled some of the more straightforward categories in their path toward centralized procurement asked CoVest to assist in creation of centralized contracts for additional categories.


We worked with the member and our suppliers to drive a deep understanding of the business’s needs beyond simple price savings to ensure a strong fit from the inception of the contract. This was accomplished through the engagement of many internal stakeholders after we had gone through the benchmarking process and determined that sufficient savings was on the table to warrant the effort. Those categories included Bearings & Power Transmission, Electrical Supplies and Temporary Labor.


Each of the categories drove significant savings and compliance to the central contract increased dramatically as a part of the effort.

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Company Description

Building Products Manufacturer


  • MRO
  • Temp Labor

Product Sub-Categories

  • Bearings & PT
  • Electrical Supplies
  • Temporary Labor

Current Supply Situation

Central contract exists but with very low compliance

Procurement Strategy

Create centralized contracts and work with sites individually to sell the contract to drive compliance (all categories non-mandated)

Timeline of Engagement

The member desired to work a category at a time, each of which took 3-6 months to complete