What trends are happening in procurement in higher ed? Four key factors are shaping the procurement landscape moving forward:
- Supply chain uncertainty: Procurement teams are now focusing on building resilient supply networks rather than just cutting costs, helping institutions adapt to changing global markets.
- AI and data analytics: New technologies are revolutionizing how universities analyze spending and supplier data. Procurement departments can now use AI to gain deeper insights into spending patterns and market trends and help schools adopt AI throughout the organization and promoting supplier diversity.
- Workforce Changes: With changing demographics and increasing competition for tech-savvy talent, universities face challenges in recruiting procurement and IT staff.
- Sustainability: As universities commit to reducing their carbon footprint, procurement plays a crucial role. Teams are now responsible for sourcing eco-friendly materials, managing green initiatives, and balancing sustainability goals under budget constraints.
These trends, and others, are causing higher education procurement leaders to re-evaluate processes and policies to adapt to the changing marketplace and improve value creation.
Value Creation
While cost reduction is still at the forefront, it’s a new era for procurement teams that must focus on value creation.
“The past few years of upheaval have underscored procurement’s importance for generating value. The next few years could make its contributions even more critical.”
McKinsey
Today’s procurement teams are deploying multiple tools to extract greater value, often redefining roles, from purchasing agents to procurement data analysts. Using business intelligence tools, artificial intelligence, and predictive analytics, procurement teams are leveraging data for better decisions about forecasting, risk assessment, performance optimization, and supplier negotiations.
Focus on Technology and IT Services
Modernization is happening across all departments in higher education, whether it’s hardware or software to improve efficiency or procuring the tools and services students need to compete in tomorrow’s workforce. For example, the demand for hybrid and blended learning is accelerating.
“By 2027, 60% of higher education institutions will adopt a hybrid operating model that blends physical and virtual capabilities to deliver the institutional mission.”
Gartner
Schools are leveraging technology to control costs and train students. For example, Case Western Reserve University’s smart buildings automatically optimize energy and water consumption to save money. The data from these sustainable buildings is used as a teaching tool.
In fact, you can listen to podcast episode that explores that here.
Schools are turning to third-party providers to outsource technology services such as cybersecurity and infrastructure to upgrade systems and deal with IT staffing shortages. The education sector now spends over $9 billion on internal IT resources and
$33 billion on third-party IT services.
Supplier Sustainability = Diversity
Procurement and finance teams continue to focus on key initiatives revolving around sustainability and diversity.
Sustainability in procurement goes beyond just sourcing eco-friendly products. It encompasses a holistic approach to reducing environmental impact throughout the supply chain. Key
trends happening in procurement include:
- Life cycle assessments: Evaluating the environmental impact of products from production to disposal.
- Circular economy principles: Prioritizing products designed for reuse, recycling, or biodegradability.
- Local sourcing: Reducing transportation emissions and supporting local economies.
- Vendor sustainability assessments: Evaluating suppliers based on their environmental practices and certifications.
Universities are also placing greater emphasis on partnering with diverse suppliers, including businesses owned by minorities, women, veterans, and members of the LGBTQ+ community. This focus helps meet key goals, including:
- Promoting economic inclusion and community development.
- Fostering innovation through diverse perspectives.
- Enhancing the institution’s reputation and social impact.
- Aligning with federal and state diversity requirements for public institutions.
Many universities are setting targets for diverse supplier spend and implementing programs to identify, vet, and onboard diverse suppliers.
Balancing Cost Efficiency and Goals
For academic institutions, the challenge often lies in meeting goals and evolving as trends emerge. Obtaining quality goods and services that meet the needs of the school, staff, and students within tight budget constraints is no easy feat.
Diverse and sustainable sourcing requires additional work. So does finding true value creation throughout the procurement lifecycle and meeting rapidly evolving technology needs. It can feel a bit overwhelming at times.
Cooperative purchasing organizations, like E&I Cooperative Services, can help streamline procurement while producing significant savings. E&I Cooperative Services is the only member-owned, nonprofit cooperative purchasing organization focusing solely on the education sector. Procurement professionals and category specialists leverage aggregated spending across E&I’s 6,000 member organizations to deliver optimal pricing and contracts tailored to higher education.
Learn more about how E&I Cooperative Services can help you streamline your procurement, reduce costs, and stay on top of emerging trends. 
