Frequently Asked Questions

1. What is Common Goods?
2. Why did MOWAA create Common Goods?
3. Do I need to be a member of MOWAA to participate in Common Goods, and if I am already a MOWAA member, am I required to join?
4. What are the benefits of my participation?
5. Does it cost anything to join?
6. Who should participate in Common Goods?
7. What are the benefits of Common Goods to MOWAA?
8. What is a Group Purchasing Organization (GPO)?
9. How many senior meal programs are purchasing this way?
10. How does the Common Goods system work?
11. How do I know that Common Goods will work for me?
12. How do I sign up?
13. How do I get in touch with these representatives so I can receive the forms?
14. What if I do not want to purchase food through Common Goods?
15. What are the guidelines to purchase food and related items through Common Goods?
16. What are the 12 product categories that need to be purchased through SYSCO?
17. Does the SYSCO purchasing requirement preclude me from shopping anywhere else?
18. What is the commitment to sign up for the Common Goods program and what happens if I sign up for Common Goods and don’t like it?
19. Can I keep my current SYSCO marketing representative if I want to?
20. Is there a minimum order size?
21. How do I place my orders?

General Information on Common Goods

1. What is Common Goods?
Common Goods is a three-way collaborative initiative among the Meals On Wheels Association of America (“MOWAA”), MedAssets, the nation’s third largest and fastest growing group purchasing organization (“GPO”), and SYSCO, the largest foodservice distributor in North America, to bring value to Meals On Wheels (“MOW”) programs. This is a newly-revamped group purchasing effort being undertaken by MOWAA on behalf of, and as a benefit to, its members and other community-based meal providers across the country. By taking advantage of the collective buying power of thousands of MOW providers, Common Goods is designed to create savings of between 5% and 15% on food and other supplies that meal providers purchase regularly. The main component of Common Goods is an easy-to-use, Internet-based system through which purchasers can see low contract prices and order products. (see FAQ #10). MedAssets and SYSCO are making every effort to ensure that MOW programs and others that participate in Common Goods receive the lowest price, best delivery service and highest quality items.

2. Why did MOWAA create Common Goods?
MOWAA created Common Goods for the common good of senior meal programs and the individuals they serve. Common Goods is the new and improved successor to the effort formerly known as the MOWAA Marketplace, and is a fundamental part of the collaborative services model that MOWAA is promoting among its members. Common Goods is an on-going effort to find substantial savings and to encourage providers to act more entrepreneurially, which will enable Meals On Wheels programs to prepare for the challenges of the future. Individually, each meal provider has very limited purchasing clout with food manufacturers and distributors. However, when meal providers – which serve well in excess of one million meals every day -- work together through an initiative like Common Goods, they collectively have the purchasing power of some of the nation’s largest fast food companies. Such collective volume makes food manufacturers and distributors pay careful attention to the needs of the senior nutrition program customer.

3. Do I need to be a member of MOWAA to participate in Common Goods, and if I am already a MOWAA member, am I required to join?
No and no. MOWAA specifically developed Common Goods to be open to all non-profit, community-based meal programs that share the goal of working for the common good to eliminate senior hunger in this country. MOWAA urges all meal programs to take advantage of the savings offered by Common Goods. There is no requirement for any provider, MOWAA member or not, to participate in or join the Common Goods program. However, because the pricing is predicated on volume, it is only with more participation that we can ensure the pricing through the Common Goods program shows the lowest procurement costs possible.

4. What are the benefits of my participation?
In a word: savings. The goal of Common Goods is to realize between a 5% and 15% reduction on the cost of food and other supplies. Meal providers who have already joined Common Goods are currently seeing an average savings of approximately 10%; but once more programs participate, we anticipate that the savings will be even greater. These savings go directly to the meal programs that are making the purchases. In addition to providing these cost savings, Common Goods is also designed: (a) to help provide access to manufacturer and SYSCO brand rebates that can be accessed through the system and are not generally available to programs purchasing individually; (b) to lessen staff time in ordering; and (c) to reduce the overall costs of meals produced by your program.

5. Does it cost anything to join?
There is no charge to join Common Goods, and there is no annual fee or other type of financial commitment for ongoing participation. However, there is a stipulation that a member of Common Goods (GPO participants are called “members”) make the commitment not to use another GPO, to purchase items through Common Goods as explained below (see FAQs #14,15,18) and to keep MedAssets’ pricing information confidential.

6. Who should participate in Common Goods?
Meal providers of all sizes, with or without kitchens, can benefit by their participation in Common Goods. The negotiated prices are developed as a result of the collective buying power of the more than 1000 MedAssets’ members, which include large and small hospitals, nursing homes and other care facilities across the country which are actively buying food items through MedAssets (MedAssets has more than 20,000 members that buy hospital, surgical and health care related and other equipment and supplies). These negotiated prices can benefit all meal programs, even those that use a caterer. The program and its caterer can compare the caterer’s prices to what is available through Common Goods. If savings are found, the meal program can decide how it should allocate the benefits. In addition to the potential food savings, meal programs will through Common Goods have access to lower prices on hundreds of non-food items. These include, but are not limited to, office supplies, paper products, tires and vehicles, pest control services, and even building construction assistance.

7. What are the benefits of Common Goods to MOWAA?
The collaboration between MOWAA, MedAssets and SYSCO allows all MOWAA programs to receive the best pricing, the best products, and a dedicated staff to help in any situation. This alone is a benefit to MOWAA because it helps our members. In addition, it raises awareness in the corporate community about MOWAA, our members and our collective mission, and creates the potential for significant long-term relationships that could be of enormous benefit to the Association and its members. Food manufacturers and other suppliers that reach a minimum level of sales are required to become corporate members of MOWAA, which further solidifies our relationships. In order to help address the growing demands on our programs, MOWAA must always continue to seek potential corporate sponsors to create innovative partnerships that can make a difference.

Group Purchasing and Meals On Wheels Programs

8. What is a Group Purchasing Organization (GPO)?
A group purchasing organization, like MedAssets, is an entity that leverages the purchasing power of a group of purchasers (like hospitals or senior meal programs) to obtain discounts from vendors and distributors based on the collective buying power of all the GPO members.

9. How many senior meal programs are purchasing this way?
Currently, there are 130 senior meal programs across the country accessing the MedAssets purchasing program, which serves as the foundation for Common Goods. Some meal providers have been affiliated with MedAssets and its predecessor organization for decades. In addition, MedAssets has over 1000 health care members that purchase food and other supplies from its group purchasing program. This collective buying activity further expands the purchasing power of MOW programs and other meal providers.

10. How does the Common Goods system work?
MedAssets takes all of the collective purchasing power of its GPO members and negotiates with food manufacturers, non-food suppliers, and distributors for the best delivered prices based on an expected purchase volume level. These prices are significantly below what any individual meal provider or hospital might be able to negotiate on its own. But participation is a two-way street. Because the negotiated prices provided to MOW programs are based on the food suppliers’ and distributors’ expectations that there will be a certain level of purchasing commitment from the participating members, the MOW program must make a commitment to SYSCO that 85% of the program’s total food purchases from broadline foodservice distributors will be made through the Common Goods program via eSYSCO’s electronic ordering platform. This percentage requirement is discussed in detail in FAQs #15-18 below. If there are specific product categories that you feel you cannot purchase through SYSCO, please let your MedAssets representative know. We will then discuss this matter with SYSCO to see if a waiver can be made. But to clarify simply, GPO members are NOT required to make 85% of all their purchases through Common Goods. They do agree that 85% of the foodservice purchases that they make through a national distributor (like SYSCO) shall be purchased through Common Goods.

In order to become a member of Common Goods, MOW programs will be required to complete three documents (see FAQ #12 below). These will establish membership and enable a meal program to share in these low negotiated prices. Thereafter, the program can log onto eSYSCO to see the MedAssets-negotiated prices and discounts for food and other items.

To purchase food items, the MOW program reviews and selects the items or menus as may be desired, and then orders the items through the eSYSCO link. The MedAssets pricing is automatically transferred to that food order. For non-food items, we will provide you with a hard copy list of available vendors with whom MedAssets has contracts or you can have access to MedAssets electronic catalogue (CDQuick) where you can view non-food prices as well as click on a link to the supplier’s website. Your MedAssets representative will set you up with a password and training if you choose this electronic option. Use of CDQuick is free.

11. How do I know that Common Goods will work for me?
The best way to check is to see how well it is working for other MOW programs. With an average 10% savings, the responses from those participating have been enthusiastically positive.

Also, there is no financial obligation to try the Common Goods system to see how it might work for a program, and there is no financial penalty for discontinuing use of the system (see FAQ #18). When a Meals On Wheels program enrolls as a Common Goods GPO member, the program is agreeing to the committed level of purchasing from SYSCO. Once a member places its first order, that new member will have 120 days to transition into the 85% commitment level. At all times, there are confidentiality requirements regarding the pricing information.

If a program needs additional evidence to support a change in its purchasing before signing up with Common Goods, the program may ask MedAssets to conduct a cost-study. A cost-study is an analysis of a program’s current purchases compared to the prices available through the MedAssets’ program should you choose to join the GPO. The cost-study will demonstrate the savings potential through Common Goods before a program joins. All of the information the program provides to MedAssets remains confidential, and there is no commitment required to receive a cost-study. The cost-study will also give a program a sense of the additional incentives it might earn in addition to the invoice price.

MedAssets and SYSCO have made a good-faith effort to give MOW programs the opportunities to make a smooth and easy transition and to access better pricing, while placing the performance burden on themselves to prove the value to the MOW program. MOWAA wants all MOW programs that participate on Common Goods to be successful, and MedAssets and SYSCO are doing everything they can to achieve this goal.

Participation in the Common Goods Program

12. How do I sign up?
There are three forms that a Meals On Wheels provider must complete in order to access the Common Goods program, to receive the benefits of the MedAssets contracts and to purchase items through SYSCO. (See FAQ #18 about the commitments not to utilize another GPO and to protect confidential information as well as the purchase level commitment.)

The first form is the MedAssets Participation Agreement, which is the document required to link the MOW provider to MedAssets and the Common Goods program. The second and third forms, referred to as the SYSCO paperwork, are the MedAssets Food & Nutrition Program Distributor Commitment and Member Participation Form (“Distributor Commitment Form”) and a SYSCO credit application.

Signing the Participation Agreement and the SYSCO paperwork will allow you to receive MedAssets’ pricing on both non-food items as well as food items through eSYSCO. The Participation Agreement must be completed with your program information, signed and sent to MedAssets where it will take 2-3 days to be processed once the form is received. This documentation does not require you to make a purchase. The Participation Agreement has been negotiated by MOWAA Counsel on behalf of MOW programs. Please feel free to have your own attorney review the document if you wish. Among the key parts of the Participation Agreement are the Confidentiality provisions which apply to anyone who accesses the Common Goods program.

If you plan to purchase food items through Common Goods, you must complete the SYSCO paperwork in order for your organization to begin receiving MedAssets’ pricing with SYSCO. The Distributor Commitment and Member Participation Form can be obtained from your MedAssets representative, and the SYSCO Credit Application, which is required by SYSCO to set up a new customer account, will be provided to you by your SYSCO representative.

13. How do I get in touch with these representatives so I can receive the forms?
These forms can be obtained from the MOWAA website via the Common Goods link. You may also get copies from Amanda Craft, Resource Group Manager, MedAssets at 800-950-4722.

14. What if I do not want to purchase food through Common Goods?
Can I still access MedAssets pricing on non-food supplies? This approach is fine. While the food program brings the most significant saving opportunities to MOW programs, some programs may only choose to access the non-food contracts. A program selecting this option does not need to complete the SYSCO paperwork but must complete the MedAssets Participation Agreement. There are hundreds of items, from pest control to office supplies to vehicle purchases, that can be made through the Common Goods program. For non-food items purchased outside of SYSCO, MedAssets will provide GPO members with a complete list of contracts and order information. A MedAssets representative can also assist meal programs with any ordering or questions.

15. What are the guidelines to purchase food and related items through Common Goods?
On the Distributor Commitment Form, there is a statement whereby participants agree to purchase 85% of their annual total foodservice purchases through SYSCO. The 12 food product categories are listed below (see FAQ #16). Once a program starts purchasing through SYSCO, this threshold is not hard to meet, because these food items are already being purchased from some source. Product categories that may not be included would be based upon availability of the items through the specific SYSCO Operating Company serving the MOW program. If SYSCO does not carry a product in a category that a MOW program requires, then those items would not be considered part of your commitment. Purchasing as much as possible through SYSCO will create the maximum advantages of the MedAssets program incentives (such as drop size, manufacturer rebates and SYSCO brand rebates). This translates to savings for all GPO members.

16. What are the 12 product categories that need to be purchased through SYSCO?
The requirements of the Common Goods / MedAssets / SYSCO program are that you purchase 85% of the following categories through SYSCO:

Healthcare Dairy Meats Seafood Poultry Frozen foods

Can/Dry Produce Paper/Disposables Chemical/Janitorial Supply & Equipment Dispenser Beverages

17. Does the SYSCO purchasing requirement preclude me from shopping anywhere else?
It does not. The only recommendation is that the MOW program purchase 85% of the items from the 12 categories listed in FAQ #16 from SYSCO. Further, there is a requirement that the meal provider not be affiliated with any other Group Purchasing Organization (see FAQ #18); if you have such a relationship, bring it to the attention of your MedAssets representative.

18. What is the commitment to sign up for the Common Goods program and what happens if I sign up for Common Goods and don’t like it?
MOWAA is asking for a commitment to utilize the program for one year, but there are no financial penalties if a program stops (or never starts) purchasing through Common Goods (as discussed below, the Confidentiality price protections must be preserved). Therefore, the initial term of your MedAssets Participation Agreement is for one year and participation is thereafter automatically renewed. After the one-year term, a program is asked to provide written notice if it decides to cancel its participation. There is never any cost to community-based meal providers to access Common Good and utilize the cost-savings program.

There are three major commitments to be a member of Common Goods. A Common Goods member must make a commitment: a) not to utilize any other GPO; b) not to disclose confidential information from the website; and, c) to purchase 85% of its total purchases in the identified categories from SYSCO. Meal programs will have 120 days to reach the 85% purchase level.

If your purchases through SYSCO fall below the 85% commitment level, your SYSCO representative or operating company will work with you to identify products available to help you reach the 85% compliance level in the available product categories. If your program chooses not to participate at a committed level, then a mutually-agreeable date to terminate the distribution relationship will be determined. If any products have been stocked at a SYSCO facility at the specific direction of your program, you will be expected to deplete the inventory on hand prior to exiting.

19. Can I keep my current SYSCO marketing representative if I want to?
While we think that ordering on-line through Common Goods and eSYSCO should be easy and save money for your program, we understand that a program may desire to keep its current SYSCO marketing representative to assist in your planning and purchasing. Each circumstance will be unique with the local SYSCO facility but in these cases, there will likely be an additional charge of 1% added to each bill to cover the extra costs associated with maintaining this service.

20. Is there a minimum order size?
Yes. The minimum order size is $500 per drop. However, there will be additional margins applied to deliveries under $1000. Orders averaging less than $800 may have an additional 6% added to margins. If delivery sizes average between $800 – 1000, an additional 4% margin may be applied.

21. How do I place my orders?
For food items through SYSCO, a MOW program will order directly through the SYSCO on-line catalog (eSYSCO) or call into the customer service line to place orders. SYSCO will initially set up each program with a customized shopping list (order guide) of the products the program currently buys and will walk the program through the process of ordering through Common Goods and eSYSCO. For non-food items purchased outside of SYSCO, MedAssets will provide the program with a complete list of contracts and order information through Common Goods. A MedAssets representative can also assist the program with any ordering or questions.