On the Evolution of Group Purchasing Organizations and How CoVest Bucks Convention [PRO]
Group purchasing organizations (GPOs) are typically not well understood by procurement practitioners unless they’re already engaged with providers. This lack of full appreciation of the model (outside of healthcare) is partly due to the fact that GPOs tend not to market themselves to prospective members as much as software vendors, other services firms, and even indirect materials and services suppliers themselves. CoVest, a GPO that has successfully targeted larger procurement organizations than many of its peers has by focusing on a more flexible engagement partnership model, is guilty as charged in this regard. But despite a lack of broad-based awareness outside its member base, CoVest, like its peers, is quietly delivering an alternative sourcing model that is gaining increasing traction with every year across categories such as office supplies, MRO, and temporary labor. In this review of CoVest, Group Managing Director Jason Busch shares what he learned from talking to the GPO, as well as reference discussions with both buyers and suppliers using the organization alongside other sourcing approaches. Read on to see how CoVest bucks convention as a GPO.