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Nearly every college and university across the country is concerned about its finances. For some, it’s a dire situation. Even institutions that haven’t felt the pinch yet are not immune, as higher ed analysts anticipate continued budget cuts. Schools are being forced to eliminate programs , redesign learning experiences, and make increasingly difficult procurement decisions.
For meeting these challenges, the importance of category management in higher ed procurement increases significantly.
Procurement in higher education has evolved from a transactional operation to a more strategic function. Traditionally, procurement teams were tasked with securing goods and services at the lowest possible price. Today, the scope has expanded to include strategic planning, supplier relationship management, and forecasting, to align with institutional goals.
By grouping similar purchases and managing them as a whole (or category), colleges and universities can better anticipate future needs, minimize costs, and improve procurement efficiency.
Category management equips procurement teams with tools to stay informed about market trends, supplier performance, and price fluctuations. For example, a category manager overseeing IT equipment can track emerging technologies, upcoming supplier promotions, and historical price trends to help their team make more cost-effective purchasing decisions.
Staying up-to-date is one of the key benefits of category management in procurement for higher ed.
Forecasting is particularly challenging in higher education. Just look at what schools are facing these days—enrollment declines, fluctuating funding, rising prices, and economic uncertainty. Procurement teams must anticipate these variables to align budgets with institutional priorities.
Category management enables procurement professionals to overcome these challenges. By analyzing past spending patterns, market data, and supplier performance, they can create more accurate forecasts.
Supply chain disruptions can have a cascading impact on higher education institutions, affecting operations and budgets. A delay in receiving critical classroom technology, for instance, can disrupt courses and lead to additional expenses.
Category management helps institutions foresee supply chain issues before they escalate. A category manager monitoring a supplier’s on-time delivery rate might identify potential delays and proactively source alternative vendors.
Supplier contracts often represent significant opportunities for cost savings. Category management focuses on optimizing these contracts by evaluating supplier performance, renegotiating terms, and fostering long-term relationships.
For example, rather than signing a one-off agreement for office supplies, a university might consolidate its purchasing under a single contract. This approach not only secures volume discounts but also simplifies compliance monitoring and ensures consistent service levels. Such practices highlight the importance of category management in higher ed procurement for driving value and efficiency.
Data is at the heart of effective category management.
Procurement teams use analytics to identify spending patterns, assess supplier reliability, and forecast future needs. These insights enable better decision-making that aligns with both budgetary constraints and institutional priorities.
One example is analyzing the total cost of ownership (TCO) rather than focusing solely on upfront costs. A category manager might determine that slightly higher initial spending on energy-efficient lighting results in lower operational costs over time. By leveraging data, institutions can ensure long-term savings and value.
Conducting across your entire portfolio can also yield significant savings in key categories.
E&I Cooperative Services is a trusted partner for colleges and universities looking to optimize their procurement strategies through category management. As a member-owned cooperative that focuses exclusively on the education sector, E&I offers tailored solutions that address the unique needs of higher education.
E&I provides access to an extensive range of competitively solicited and ready-to-use contracts covering categories such as IT, supplies, facilities management, and professional services, resulting in cost savings, streamlined processes, and enhanced supplier relationships. By combining demand from its 6,000+ education members, E&I achieves significant volume discounts.
E&I’s team of procurement professionals also understands the importance of category management in higher ed procurement. They work closely with institutions to forecast future needs and align procurement strategies with institutional goals.
E&I enables colleges and universities to maximize the value of category management, ensuring long-term success in today’s challenging budgetary environment.
Contact E&I Cooperative Services today to learn more or view available cooperative contracts across a broad variety of categories.
