The role of procurement leaders is changing rapidly, with a greater focus on strategy than transactions. A 2025 EY survey of CPOs shows that procurement leaders are increasing efforts to prioritize supplier relationships and performance management as well as ensuring alignment with institutional goals.
Yet, this focus demands one thing that is always in short supply: time.
Against a backdrop of funding and financial challenges, government policy shifts, and budget constraints, the shift requires a rethinking of how procurement teams approach institutional buying.
Part of the solution is to rely more heavily on group purchasing organizations (GPOs). By aggregating the purchasing power of multiple institutions, GPOs offer a collaborative approach to procurement that can lead to significant cost savings, streamlined processes, and enhanced compliance—and buy you time to spend on strategy.
Group purchasing organizations consolidate demand from multiple organizations to negotiate better pricing and terms with suppliers. In higher education, GPOs enable colleges and universities to access pre-negotiated contracts for a wide range of goods and services, from office supplies to technology solutions.
By joining an education-focused GPO, institutions benefit from:
Beyond immediate cost savings, GPOs play a pivotal role in transforming procurement from a transactional function to a strategic asset. By aligning procurement activities with institutional goals, such as sustainability and supplier diversity, GPOs enable institutions to make purchases that reflect their values and long-term objectives.
Contracts typically set a base rate or volume discount while allowing you to choose the products or services you want. They may also include flexible pricing, providing additional discounts for higher volume. This lets you adapt your spending as needs change without having to renegotiate terms.
Even within individual GPO contracts, there are often options to fulfill specific goals for eco-friendly products or fulfillment by certified diverse suppliers. For example, allowing you to customize your agreement to require including diverse Tier 2 or Tier 3 suppliers.
Group purchasing can also provide something that’s been difficult to achieve over the past few years: resiliency. Supply chain disruptions caused havoc. Today, price increases and tariff worries are making it difficult to plan and budget.
Yet, cooperative agreements represent a significant piece of business for suppliers across hundreds or even thousands of institutions. This collective buying power helps secure better pricing, terms, and dedicated support for member institutions.
Most contracts also include pricing provisions that limit increases or have specific price reset points so you can budget more effectively.
Because GPOs cultivate long-term partnerships, you can develop better relationships over time. This allows you to collaborate more closely. Most GPO contracts span three to five years (or longer), making it more worthwhile for suppliers to invest in the relationships.
As suppliers get to know and understand your needs better, they can recommend solutions to fit your unique circumstances and goals.
GPOs that specialize in the education sector understand the unique challenges and requirements of higher education institutions. Their contracts are tailored to address specific needs, such as compliance with educational regulations and alignment with academic calendars.
By partnering with a GPO dedicated to education, you can ensure that its procurement strategies are cost-effective and align with your educational missions.
If you’re looking for a nonprofit, member-owned sourcing cooperative that works on your behalf in the education sector, there’s only one. E&I Cooperative Services focuses solely on education, providing competitively solicited agreements tailored to the unique needs of academic institutions. By partnering with E&I, you get significant benefits that other GPOs are unable to match.
With E&I, you get access to like-minded procurement professionals who specialize in the education sector. They understand your needs and challenges and provide effective solutions that can help you focus your efforts on today’s rapidly changing academic environment.
Transform your procurement strategy and unlock significant cost savings for your institution. Find your dedicated E&I representative to explore hundreds of competitively solicited cooperative contracts and maximize your group purchasing power today.
