The benchmarking process is two-fold. It combines a quantitative assessment of the savings opportunity for reduction in piece price with an assessment of Total Cost of Ownership (TOC) opportunities to develop a comprehensive business case for your consideration. This is at no cost or obligation.
The Price Opportunity
We work with your team to develop the approach for benchmarking the price opportunity for selected categories 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 typically start with a collection of all spend detail in the category and then select a representative market basket and sample size designed to yield a savings percentage estimate with a statistical margin of error of less than 2%. CoVest conducts the savings analysis and prepares a summary report that is shared with you.
The Total Cost of Ownership Opportunity
In parallel with the assessment of the price opportunity, our supply partner conducts an assessment of other non-price opportunities. We work with your team to select sites for the assessment. The assessment typically takes one to two days of interviews and data collection at each site. Opportunities explored include:
Our supply partner then prepares an analysis and quantification of the opportunity.
Together with our supply partner, CoVest prepares a comprehensive business case and implementation approach for your consideration and approval.