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Indirect Spend Management Process

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.

Vendor Categorization Spend Cube

The CoVest 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