What is a CVC?
To put it simply, a Committed Volume Contract (CVC) is an optimum supply arrangement
through enhanced purchasing power. The components that enhance purchasing power
include:
Commitment of the participants, creating greater certainty for the suppliers;
High volume through aggregation among participants;
Well balanced terms and conditions;
Equitable tendering and evaluation protocols;
Partnership of stakeholders ie purchasers, suppliers and the
facilitators
What are the benefits of a CVC?
CVCs benefit the stakeholders in a variety of ways. Benefits to the purchasers include:
Competitive and value added outcomes not achieved through individual tendering;
Substantial savings in resources to conduct individual tendering;
Being active supporters and participants of industry best practice;
Opportunity to create long term relationships.
Benefits to the suppliers include:
Attractive volumes;
Certainty of orders;
Opportunity to create long term relationships.
Our Experience & Achievements
Strategic Purchasing is one of the largest procurement companies in Australia. Over time, we have developed and pioneered a number of strategies and processes to address the requirements of the ever changing purchasing environment.
Strategic Purchasing has developed and retained its own specialists to deal with all categories of CVC products and services. Strategic Purchasing has conducted a number of committed volume contracts over the last few years and has achieved substantial savings for its members in the categories of :
Electricity Contracts Victoria and South Australia: 30% to 50% savings in the
various phases of the electricity deregulation
Public Lighting in Victoria and New South Wales: 30%-40% savings
Natural Gas in Victoria: 10%- 25% savings
Telecommunication Services: 20%- 30% savings;
Water Meters: 15%- 30% savings
Water Chemicals: 20%- 40% savings
Further Information
For further information or assistance on CVCs, please contact Strategic Purchasing on (03) 9810 8600.
