INNOVO Network Limited

How INNOVO Works INNOVO is a free managed commercial network that covers everything that an organisation buys. INNOVO enables buyers to pool their procurement with other buyers generating a volume related price rebate which INNOVO collects and shares with the buyers. There is no charge for either the buyers or suppliers to list on INNOVO. Instead INNOVO earns a share of a rebate that it collects on behalf of major buyers sourcing from the same supplier. INNOVO also allows buyers to evaluate new suppliers against the performance rankings that other buyers have given the supplier. INNOVO can be used by an organization to procure everything (millions of goods and services) that it needs: • ALL goods and services, direct and indirect • Capital expenditures, including capital goods and property • Management talent and manpower Using INNOVO, the buyer negotiates the best price from either an existing or new supplier, as well as an additional rebate for every new customer that the supplier acquires through INNOVO. All of INNOVO’s members enjoy increasing price rebates from the supplier as its sales through INNOVO increase. Once agreed, each buyer notifies INNOVO of each invoice from the supplier and INNOVO invoices the supplier for the price rebate based on the invoice. This price rebate is shared between each buyer and INNOVO. Suppliers waste large business development and marketing budgets on trying unsuccessfully to reach major new customers because they have no relationship with the target and don’t know if and when the new customer is in the market for the supplier’s product. INNOVO saves suppliers these wasted costs because it connects them to major buyers when they are in the market for their product. The rebate agreement makes the supplier attractive to all other buyers on INNOVO who will benefit from the rebate triggered by the total volumes of all buyers for the supplier. INNOVO also enables suppliers to efficiently sell unutilised capacity. Like the buyer, the supplier can also use INNOVO to reduce its own procurement costs across everything that it buys. Achieving cost savings across all of the supplier’s procurement can more than compensate for the rebate it pays to the new buyer. INNOVO’s Other Services Besides enabling much more effective buying and selling, INNOVO offer the following services at no charge:- • Sourcing and commercialising innovation. • Undertaking commercial projects for a share of the profit. • Forging strategic alliances especially for joint new product development. • A network where talented individuals can work on major projects for a share of the profit. Why Buyers Want to Use INNOVO • The service is completely free to the buyer and without any obligation to buy. • INNOVO can reduce costs from existing and new suppliers. • An organisation can source everything that it needs through INNOVO. • INNOVO drives ongoing cost savings down the supply chain. • INNOVO offers the expertise of global procurement consultancies and 100,000 senior executives. • Buyers can evaluate potential new suppliers by the rankings they have been given by other buyers. • INNOVO makes procurement a new profit centre when it pays the monthly price rebates earned. Why Suppliers Want to Use INNOVO • It makes it much easier to acquire blue chip clients. • Buyers will want to buy through INNOVO for all of the reasons listed above. • Supplier savings across all of its procurement can exceed the rebate for new blue chip clients. • INNOVO is free of charge. It is a targeted business development service for the supplier. • The supplier can generate new commission income streams by introducing organisations to INNOVO.