From Planning to Implementation: Making the Most of Higher Ed Cooperative Agreements

Colleges and universities are increasingly leveraging cooperative agreements . By utilizing contracts that are already in place from sourcing cooperatives like E&I Cooperative Services, you can meet compliance goals and reduce costs.

In this article, we will discuss “What is a cooperative purchasing agreement in higher education?” and how you can get the most out of it.

What Is a Cooperative Purchasing Agreement in Higher Education?

Cooperative purchasing agreements allow multiple colleges or universities to join together to procure goods and services. A group purchasing organization (GPO) or sourcing cooperative acts on behalf of its members to negotiate pricing and terms with suppliers.

Benefits include:

• Cost savings: By pooling buying power, institutions can secure discounts and better contract terms that would be difficult to achieve independently.
• Efficiency: Cooperative agreements reduce the time and resources required to negotiate individual contracts, streamline procurement processes, and minimize administrative costs.
• Access to more suppliers: Because of the volume, suppliers are more likely to participate in competitive solicitations, giving you access to a broader range of suppliers.
• Compliance: Contracts are negotiated to comply with regulations and institutional procurement regulations to reduce the risk of compliance issues.

Higher ed cooperative purchasing agreements empower academic institutions to reduce their administrative burden.

Identifying Opportunities and Goals

Maximizing your procurement process starts with identifying key opportunities for using cooperative agreements.

Assessing Institutional Needs

Evaluate your institution’s procurement priorities. What are the most significant spending categories? Where could the institution benefit from cost savings or improved terms? By understanding these needs, procurement teams can better determine which goods and services would be best suited for higher ed cooperative purchasing agreements.

Setting Goals

Define clear, measurable objectives. For example, goals could include achieving a specific percentage of cost savings, improving delivery times, or reducing the administrative burden of procurement.

Aligning with Long-Term Strategy

Cooperative agreements must align with your institution’s long-term procurement strategy. Determine how cooperative purchasing will help the institution meet its broader goals, such as improving sustainability, supporting diversity, or enhancing operational efficiency.

Involving Stakeholders

Successful adoption requires buy-in from all relevant stakeholders. This includes procurement teams, finance staff, and legal departments. Engaging these teams early ensures that departments are aligned on goals and expectations, helping to smooth the implementation process.

Integrating Cooperative Agreements into Your Procurement Processes

Implementing these agreements requires a strategic approach that fits your workflow. Key steps include:

Integration

Ensure that your institution’s procurement systems are set up to manage cooperative agreements. This might involve working with IT teams to make sure you have an easy way to manage and track cooperative agreements.

Training teams

Train procurement staff and other relevant stakeholders on how to use higher ed cooperative purchasing agreements effectively. This includes familiarizing them with contract terms, the supplier network, and the online tools or platforms for ordering goods and services.

Ensuring compliance

Verify that all institutional policies align with the terms of the cooperative agreements. While sourcing cooperatives typically have pre-negotiated compliance features, it’s important to ensure that these agreements align with your institution’s procurement policies.

Maximizing Benefits Post-Implementation

Once you join a cooperative contract, you need to manage it to optimize the benefits. Procurement teams should review contracts regularly to ensure they continue to meet evolving institutional needs. As market conditions change, there may be opportunities to renegotiate or switch to alternative suppliers.

Data analytics are key here. Putting a system in place to monitor the effectiveness of cooperative contracts can help ensure you are using them optimally. For example, tracking KPIs like supplier performance and cost savings from contracts can help you make better decisions moving forward.

Another way to maximize value is to look at your overall spending portfolio. There may be opportunities to bring more spend under contract to achieve greater volume discounts. This is especially important at schools where spending is decentralized across various departments. Pooling procurement resources often yields significant savings.

Category management can also yield additional efficiencies. Working collaboratively with suppliers, you can find innovative solutions to your challenges and find additional areas where you can reduce costs.

Find Cooperative Purchasing Agreements

By following a strategic approach to planning, implementing, and optimizing your higher ed cooperative purchasing agreements, you can improve efficiency, save money, and reduce the administrative burden.

E&I Cooperative Services is the only member-owned nonprofit sourcing cooperative that exclusively serves the education sector. By aggregating demand across 6,000 member intuitions, E&I can negotiate significant volume discounts.

View available cooperative purchasing agreements at E&I Cooperative Services. Have questions? You can talk to one of our education procurement experts at 877.MYEANDI (877.693.2634)