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To say the education landscape has changed dramatically over the past few years is an understatement. Forget about the jolt from the pandemic; that’s yesterday’s news. Today, most schools are dealing with even tighter budget constraints, rising prices, technology challenges, fewer staff, and shifting enrollment.
Ensuring schools, colleges, and universities have the goods and services they need to operate and also reduce costs has become a serious challenge for procurement teams.
That’s just one of the reasons schools are turning to group purchasing organizations (GPOs) more than ever. However, the type of GPO you choose makes a big difference in your success in dealing with today’s realities. Your best approach is working with an education cooperative that understands the needs of academic institutions.
The best cooperatives are nonprofit and member-owned, however not all education purchasing cooperatives work this way. This ensures that they serve the procurement needs of member organizations rather than owners or shareholders.
An education cooperative will have deep insight into the unique needs of schools, colleges, and universities. This produces cooperative contracts with terms and conditions favorable to academic institutions.
One of the biggest benefits of working with an education cooperative is access to category experts who can use the combined purchasing power of members to secure volume discounts and streamline procurement. Members get access to a broad range of suppliers and pre-negotiated contracts with top-tier suppliers, typically at prices they could not negotiate on their own. Such a collective approach results in significant savings of time and money.
Depending on the GPO, there are pros and cons. Most of the disadvantages are associated with which one you choose and how you use the cooperative. For example, working with a general industry GPO may not serve the needs of the educational sector. Some GPOs also charge administrative fees or require minimum purchasing requirements.
Here are some of the more common pros and cons of cooperatives in business.
Pros | Cons |
Cost Savings | Limited Vendor Pool |
Time Efficiency | Less Flexibility |
Compliance | Overdependence |
Vendor Vetting | Administrative Fees |
Simplified Procurement Process | Potential for Overlap |
Access to a Wide Range of Products and Services | Contract Lock-in |
Support and Resources | Risk of Standardization |
As you can see, the advantages far outweigh any disadvantages, and most of the negatives are within your control. E&I Cooperative Services, the only true member-owned education cooperative focusing solely on the education sector, avoids these negatives. With E&I, you have access to more than 200 of cooperative contracts. Yet, there is no membership fee or minimum purchasing requirement. Members can opt into existing contracts at their discretion.
Another way that education cooperatives are changing the landscape is by taking a more strategic approach to procurement. For example, E&I Cooperative Services offers no-cost Strategic Spend Assessments (SSAs) for members.
Looking at your high-level spend data, E&I Cooperative Services can identify areas where your portfolio aligns with available cooperative contracts to lower costs. You may also be able to find areas where consolidating purchases can lead to greater volume discounts. SSAs also help the education cooperative determine areas where future cooperative contracts could benefit members.
The educational landscape continues to shift. You need to work with an education cooperative that understands these changes and grows with you, focusing on the unique needs of the education sector.
Check out the available contracts through E&I Cooperative Services. Start saving time and money today.
