As a group purchasing organization, CoVest utilizes the aggregate spending power of its members to create leveraged agreements with industry leading suppliers across a vast array of indirect categories.
CoVest focuses on combining the spend of members that are in and of themselves very large corporations. The reason for this focus is cost to serve – all of our members represent a similarly cost efficient customer to our suppliers due to their size. Combining these large, low cost-to-serve companies creates a program that is beyond what our members can reach alone where everyone benefits from the aggressive pricing that results.
CoVest, along with its members, focuses on categories where leverage can drive differentiated pricing and contract terms. Many indirect categories fit into this classification due to their low spend levels relative to the overall size of the business.
The benefits of leverage certainly start at driving a lower price, but reach far beyond. Our contracts are structured and managed differently. Our key items enjoy fixed, aggressive pricing, and the list is re-written regularly to ensure a tight fit with current spend patterns. Our blanket discount levels typically are driven to far more advantaged pricing levels than members can achieve individually. Our team spends far more time managing the specifics of each category than our members can afford as the spend levels in these categories are small for each member but very significant for CoVest. Lastly, our relationship with suppliers tends to reach higher in the organization and allow us to escalate issues more quickly on behalf of our members.