How do group purchasing programs save money?
In three ways; first (and most important) we negotiate deep price discounts
with our vendors, based on the combined purchasing power of the CommonWealth
members. Second, our vendors will do an analysis of your purchasing
and recommend lower-cost alternatives wherever possible. These are usually
generic or house brands that are functionally equivalent to the name
brand products you may be using now. Third, the vendors will work with
you to assure proper inventory management, to make sure you always have
the goods you need but don't over-stock, tying up capital and creating
storage problems.
What amount of savings can I expect from the CommonWealth program?
Of course this depends on the specific circumstances, and will vary
among health centers. But in general, if you are not currently part
of a group purchasing program you can expect total savings of 18 to
20 percent. Most of this will be immediate savings, and some will come
as you identify lower-cost alternatives and improve inventory management.
How will these savings affect my bottom line?
A typical human service provider or similar nonprofit organization
spends 9 to 10 percent of the total budget on supplies, so a
savings of 18 to 20 percent of supplies costs will yield a 1.5
to 2 percent savings on the overall budget. CommonWealth Purchasing
Group is a powerful tool to help you improve your financial performance.
What about service? We're generally satisfied with our current suppliers.
Great service is just as important as low prices. And of course most
health centers are satisfied with their current suppliers; if they weren't
they would switch. But with CommonWealth you don't have to sacrifice
service in order to get low prices. Our program can often improve the
level of service you receive. Here's how: CommonWealth negotiates three-year
exclusive contracts with our vendors to assure a long-term commitment
to our members. Our vendors have worked hard to get your business, and
they want to keep it! Our vendors have top quality national distribution
and service networks, to provide prompt and efficient services to every
member. Each vendor assigns a senior executive as the CommonWealth account
manager to make sure our large buying power translates into superior
service for our members. And our staff work directly with the vendors
to quickly resolve any problems that arise. Most members come to CommonWealth
because of our low prices, but they stay because of our outstanding
service.
It's often difficult to change vendors. How can CommonWealth help us with that?
It can be difficult to change vendors, but when you change to a group
purchasing program like CommonWealth the benefits will always far outweigh
the costs. With our years of experience, CommonWealth and our vendors
are very qualified in helping health centers to make these changes.
Vendor representatives will meet with you and your staff to discuss
all aspects of the business and operational relationship, including
ordering, delivery schedules, the availability of samples, return policies,
and answer all questions.
If you have more questions, call CWPG at 617-426-2767
