Realizing the Three C's of Procurement: Control, Consolidation and Cost Savings

October 23, 2020
woman in PPE checking incoming shipment of products

Procurement offerings from group purchasing organizations (GPOs) should help control inventory and reduce costs. If not, something’s not working. Companies, especially those in healthcare and hospitality, buy a wide range of items and want to streamline procurement for a leaner, more manageable inventory.

The right GPO can support an organization’s buying or sourcing team to achieve the three Cs: control, consolidation and cost savings. For example, Provista Procurement Solutions can manage all procurement processes for members from start to finish.

“By utilizing our team of specialists and our industry-leading materials management software Envi®, members can gain visibility into spend across all their locations, reduce labor costs and drive product and contract compliance,” says Ryan Nelsen, Provista’s national director of Procurement Sales. “Our team is an extension of your workforce, notifying you of irregularities and resolutions as well as providing data analytics for product standardization across single and multiple sites, increased control over product prices and maximum savings.”


Intelligent procurement allows companies to control their buying processes. GPO members can typically have as much control over their procurement as they want, with the GPO taking on the remaining duties. This gives members the flexibility to have the GPO manage the entire end-to-end process or just certain portions. 

One benefit of buying through a GPO is having transparency into the entire procurement process. Members gain a better understanding of costs and see opportunities to switch products for savings. For instance, Provista Procurement Solutions utilizes its centralized procurement management solution for organization-wide visibility into buying, spend and costs. The solution also allows greater control over buying and more informed buying decisions.

“We enable better control by creating and maintaining your item master for clean, accurate purchasing data, and maintaining all contract information within the Envi software platform,” Nelsen explains. “We also automate updates to add or remove items from GPO contracts, monitor new and expiring contracts, and ensure correct pricing through order placement and confirmation with suppliers. We resolve all pricing disputes and retrieve credits from suppliers for our members.”

“By utilizing our team of specialists and our industry-leading materials management software Envi®, members can gain visibility into spend across all their locations, reduce labor costs and drive product and contract compliance.”


A common problem that healthcare organizations, especially those with multiple locations, make is buying similar products from multiple suppliers. This results in more contracts, more accounting and more time and resources dedicated to procurement. It also makes tracking inventory more complicated.

By contrast, consolidating purchasing can enable new benefits. Spending more money with fewer suppliers can allow organizations to earn bigger rebates and move into better pricing tiers. Streamlining vendors and products also simplifies inventory and reduces deliveries, freeing up staff time for other tasks.

“We help streamline and consolidate by reviewing items in inventory on an ongoing basis. We establish one inventory number for multiple items to help with standardization, price parity and contract compliance,” Nelsen says. “Provista also aligns system-wide purchases through the enforcement of an approved product formulary to help ensure healthcare members are buying pre-approved products.”


Most companies don’t have the time or resources to identify savings on their own. And even if they did, they still wouldn’t have the economies of scale and purchasing power leverage of a GPO to drive down pricing.

GPOs can help reduce waste, improve inventory control, negotiate new contracts at industry-best pricing and reward members with rebates. A platform like Envi can add additional value by optimizing data and cost analytics to identify and then validate savings. Those savings can be invested in other areas of the business, such as new technology, office improvements, or staff hiring or training.

“A GPO like Provista is able to access improved prices through aggregation. By aggregation, I’m referring to the pre-negotiated contracts, tiers and pricing that are above and beyond the base contract by leveraging the volume of all members,” Nelsen points out. “We can decrease costs associated with the staff time dedicated to contract administration tasks and identify new savings opportunities through ongoing cross-reference of reports, analyzing items on and off GPO contracts.”


With the significant and unprecedented changes organizations experienced in 2020 as a result of COVID-19, having more control, consolidation and cost savings is more important—and more needed—than ever before. Implementing technology geared toward procurement can offer further benefits, such as automating processes. It’s another area where Provista has a solution.

“Provista Procurement Solutions are technology wrapped in services,” Nelsen said. “With innovative in-house materials management software and a dedicated purchasing team, members see savings across their entire system.”

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