In the education sector, cooperative purchasing has become an essential part of procurement to lower costs and streamline purchasing. Member-driven purchasing organizations leverage aggregated buying power to secure bulk volume discounts and more favorable terms.
While managing tight budgets and complex regulations, cooperatives can help you meet your goals more easily. Here are 10 tips for using a purchasing cooperative to maximize your benefits.
Before you can fully leverage cooperative purchasing, you need to understand how it works. Different cooperatives or group purchasing organizations operate under different models. There are state, regional, and national cooperatives, nonprofit and for-profit cooperatives, and those that specialize in certain industries.
E&I Cooperative Services is the only nonprofit purchasing cooperative that focuses solely on education.
Take time to learn who makes decisions about which contracts to pursue and how those decisions are made. Understanding your cooperative’s governance structure can help make sure your goals align.
Not all cooperative contracts offer equal value, and not all categories deliver the same level of benefit through cooperative purchasing. You will want to compare pricing, terms, and product selection across multiple cooperatives to find areas where you can get the best value in each spending category.
Pay special attention to how pricing models work. Some contracts offer deeper discounts on frequently purchased items, while others provide consistent margins across entire catalogs.
Supplier relationships are extremely valuable when working with a purchasing cooperative. Engage with account representatives from key suppliers on your cooperative contracts to discuss your institution’s unique needs, challenges, and procurement patterns.
These connections can lead to customized service levels, tailored product recommendations, and smoother problem resolution. For example, a supplier might offer specialized training for your staff, provide extended warranties for classroom equipment, or create bundle offerings specific to your needs. These advantages might not be explicitly stated in the contract.
Many cooperative contracts include tiered pricing structures that offer deeper discounts as your purchase volumes increase. Consider consolidating orders across departments or colleges to reach higher discount tiers.
In higher education, there’s often a significant opportunity to bring more spend under contract and consolidate purchases.
Multi-year purchasing commitments can unlock additional savings. If your budget allows for longer-term planning, explore contracts with locked-in discounts for multi-year commitments, especially for predictable, recurring purchases.
Most cooperatives and GPOs sustain operations through contract administrative fees, typically paid by suppliers. Understanding fee structures helps you evaluate the true value proposition of different contracts. Some contracts may also include additional incentives or rebates for purchasing, so check for those as well.
Rather than treating cooperative purchasing as separate from your broader procurement strategy, make it a regular part of your strategic sourcing process. Establish consistent decision criteria for when to use cooperative contracts versus conducting your own solicitations.
Many schools use cooperatives for commodity items, highly used equipment, and categories where they lack specialized expertise. Direct solicitations are often preferred when there are highly customized needs or they have specific directives for local community spending.
Another great tip for purchasing cooperatives is to take advantage of professional development opportunities, training webinars, and other resources. You benefit from the collective knowledge of cooperative members who can share proven strategies.
E&I Cooperative Services offers free Strategic Spend Assessments for members, uncovering hidden savings within your existing spend and strategies to leverage existing contracts.
While cooperative contracts are structured to meet legal requirements, it’s essential to ensure they align with your institution’s specific policies and applicable regulations. Keep thorough documentation showing how each cooperative contract meets your compliance standards, including competitive solicitation requirements and institutional initiatives.
Instead of simply using a cooperative purchasing organization, become an engaged participant. By joining online communities and actively sharing your needs, you ensure that your voice is heard and your requirements are met. The more cooperatives understand what their members need, the more effectively they can deliver on those needs.
Additionally, providing regular feedback on supplier performance and contract utilization helps cooperatives refine existing contracts and improve future solicitations.
E&I is member-owned, which allows for active participation in helping steer the direction of the cooperative. Members also have resources like EdPro Hub to connect with other professionals and find growth opportunities.
To demonstrate the value of cooperative purchasing to stakeholders, track both tangible and intangible benefits. Calculate cost savings by comparing cooperative contract pricing to previous prices paid, market benchmarks, or independent cost estimates.
Don’t overlook the benefits of reduced procurement cycle times, decreased administrative burden, improved contract compliance, and access to better terms and conditions. These advantages often deliver significant value beyond direct cost savings.
Incorporating these 10 tips for purchasing cooperatives can help you get more out of any purchasing cooperative. Contact E&I Cooperative Services to get started.
