Centerpoint’s Comprehensive Process
CenterPoint has developed a multi-stage process that transforms good programs into “Best-in-Class” programs. It is based on the ability to analyze, optimize, and implement with a minimal time investment from our Clients and includes the following stages:
• Data Gathering & Comprehensive Analysis
During the 1st two stages of our process, CenterPoint gathers historical data and conducts a broad review of the program’s specific purchases and supplier Agreement during this period. Consequently, we are able to develop a snapshot of the program, identify areas of concern and obtain an understanding of the buying behaviors and spending patterns that are unique to our Client. Based on the particular buying behaviors uncovered, we are able to rationalize not only the program structure and market baskets, but also target specific SKUs and potential alternatives that may produce additional savings opportunities during the optimization exercise. Finally, through our Benchmarking capabilities, CenterPoint analyzes and determines the competitiveness of the program versus that of its peers. Specifically, we benchmark against peers that have “Best-in-Class” programs and similar spend, bundle of goods and service burdens.
With the completion of the Data Gathering and Comprehensive Analysis stages, a full picture of the program is revealed and the Optimization stage begins. Combining this insight with CenterPoint’s extensive Expertise and up-to-date Market Intelligence, we are able to craft a specialized strategy and offer recommendations that address all areas of concern and incorporate “Best-in-Class” pricing structure, terms and conditions. In addition to explicit price points, pricing architecture will include language to assure accountability, verifiability and sustainability. CenterPoint negotiates directly with the supplier to secure each of the recommendations offered and execute the desired optimization strategy.
Recognizing that the Implementation stage is a key point of failure in any Optimization exercise, CenterPoint actively manages the process for our Clients. Once a new Agreement is executed, our team works directly with the supplier to assure full and accurate implementation of all agreed upon pricing and terms. Thereafter, our Clients benefit from our detailed Category Management Services as outlined below. This complete and proven approach consistently produces superior pricing and programs and provides for future savings throughout the term of the Agreement.
Once the Implementation stage has been completed, CenterPoint offers ongoing oversight of the specific category. As part of our monitoring service, we analyze all purchases during the applicable period and assure compliance with contract pricing and terms. Should an issue arise, we work directly with the supplier to resolve the dispute.
CenterPoint specializes in mitigating or eliminating unwarranted price increases or errors. For example, we monitor billing errors, list price changes, UOM issues, discontinued products, product substitutions, core-list changes and ratios, exception items, etc. Periodically, we also conduct additional Optimization efforts in response to changes in buying patterns or market conditions and include both core-list and SKU rationalization exercises as part of the process.