The "Dr. Phil" of general purchasing offers counseling about saving money
When Mosaic, the multi-state Lutheran organization serving people with developmental disabilities, needed to modernize their copiers, they negotiated their best deal – one that involved three price reductions. When they learned the vendor was a Consorta member, they realized another ten percent discount.
"That's just one example of the direct benefits we have seen since engaging Consorta as our group purchasing organization (GPO)," says Mike McDonald, Director of Asset Management at Mosaic.
McDonald said Mosaic spent five months selecting a GPO. "We identified our parameters and sought out the top companies in the field. When we matched them against the parameters, Consorta came out on top. We admire their transparency of operations and the limits they put on their share of vendor commissions."
McDonald is also known as "Phil Asset," a character Mosaic created to promote group purchasing. "With 6,000 employees in 50 sites, we have great potential for cost savings." Over half of those sites now participate.
Of LSA member organizations participating in Consorta, the largest have quarterly purchases in the five figures, but small organizations realize benefits as well. McDonald notes that Consorta can save an organization 20-30 percent on office supplies alone.
Consorta was started by Catholic hospital systems in the late 1990s. They have since expanded to other health and human service providers and now have a relationship with the National Human Services Assembly. Last year, Mosaic collaborated with the Assembly to design the "Mosaic purchasingpoint," an intranet portal web site for Mosaic affiliates. The site lists vendors, sample savings and offers one-click sign up. Earlier this year, McDonald used the site to ask if purchasers would be interested in the company Direct Supply as a vendor. Their quick response allowed him to add that company to their existing list of vendors within the month.
Consorta vendors include copiers, delivery, food, IT equipment, janitorial, medical supplies and equipment, office furniture and supplies.
For information about Consorta, contact the LSA preferred vendor liaison, Mary Starr; 800-342-5333.
