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For procurement and finance teams, cooperative purchasing contracts in higher ed represent more than just a way to save money. These agreements can serve as a strategic way to build stronger—and lasting—supplier relationships that deliver greater value.
When you have a purchasing cooperative contract in place, it allows you to focus more of your energy on working collaboratively than on having to manage the procurement process. The cooperative will source, competitively solicit, and negotiate the contract. You build the relationship.
A strong relationship benefits both you and your suppliers in several key ways.
Long-term partnerships allow for deeper engagement with suppliers, leading to better communication, quicker issue resolution, and stronger alignment with your institutional needs. Suppliers become more responsive and invested in your institution’s success, offering tailored solutions that might not be available through standard one-time purchases.
Strategic partnerships often result in suppliers being more open to providing flexible solutions, adapting to evolving requirements, and even introducing innovative products to meet future needs. This adaptability is vital for educational institutions where needs may change frequently.
For example, knowing that academic institutions have initiatives in place to increase supplier diversity and meet sustainability goals, suppliers may seek solutions that use certified diverse subcontractors to fulfill agreements, or source more eco-friendly products.
In some cases, a collaborative approach may even influence future product development to ensure your needs are met.
When you have a solid relationship with suppliers through your purchasing cooperative contract, you may also mitigate risk from supply chain disruptions. A cooperative contract represents large-volume purchases across multiple institutions. For suppliers, they are a lucrative business, which is why they offer greater volume discounts than you could likely negotiate on your own.
As such, suppliers have a significant interest in prioritizing your need to ensure they fulfill these agreements—lowering your risk.
Let’s look at a few best practices that can help you build the types of relationships you want with suppliers.
In higher education, every major initiative must support the institution’s core mission. When leveraging cooperative contracts, this alignment becomes crucial for building lasting partnerships.
Here is an example. A large research university recently procured its laboratory supplies through a cooperative contract. Rather than simply focusing on cost savings, however, they worked with their supplier to create a program that supported their research mission by providing priority access to critical supplies, specialized training for lab managers, and dedicated technical support.
The key here is to carefully map your cooperative agreements onto your institutional strategic plans.
Forward-thinking institutions select cooperative contracts that offer flexibility. This becomes essential in areas like classroom technology and IT infrastructure, where technology is evolving rapidly. Beyond purchasing technology from a supplier, you might work together to build a roadmap for integration over years.
This strategy allows you to make better decisions, phase in technology as it evolves, and work towards building a more comprehensive approach over time. Both you and the supplier benefit from a coordinated approach for the future.
Today’s higher education institutions must balance fiscal responsibility with broader societal impacts. When a supplier understands your goals, it can work more closely with you to help you stay true to institutional initiatives.
Often, there are solutions that meet multiple goals. For example, a food service contract could be structured to include local sourcing and strategies to reduce food waste and include minority-owned businesses in the supply chain. However, it takes active sharing for suppliers to understand and build contracts to meet your goals.
With today’s budget constraints, cost savings are key. However, the most successful partnerships prioritize value over initial savings. Working with suppliers, you can look at the total cost of ownership to understand true costs over a contract’s lifecycle.
A solid relationship enables you to have candid conversations about products and services and focus on the areas that are most important to you.
Cooperative purchasing contracts in higher ed streamline procurement and help you tap into significant volume discounts. They also provide the foundation for developing stronger supplier relationships and optimizing the value of your procurement efforts.
Your purchasing cooperative becomes a partner in the process, helping you manage supplier relationships and make sure everything stays on track. This is especially true when you work with E&I Cooperative Services. As the only member-owned non-profit sourcing cooperative that focuses exclusively on the education sector, E&I Cooperative Services has a deep understanding of members’ need for purchasing cooperative contracts that benefit higher education, which creates the foundation for improving supplier relationships.
Contact E&I Cooperative Services today and see how we can save you money and help you create innovative, strategic partnerships with key suppliers.
