Don’t Make These Mistakes When Choosing a National Purchasing Cooperative for Education

Selecting the right national purchasing cooperative is crucial for educational institutions looking to streamline procurement and save money. However, the process isn’t always straightforward, and common mistakes can lead to inefficiencies and compliance issues.

We’ll explain some of the key mistakes academic institutions make. But first, let’s tackle the question: what are group purchasing organizations for education?

What Are Group Purchasing Organizations for Education?

Education group purchasing organizations (GPOs) combine the purchasing power of multiple institutions to secure better prices and terms on goods and services. GPOs provide schools, colleges, and universities with access to pre-negotiated contracts, saving time and resources while ensuring compliance with procurement regulations.

For educational institutions, the benefits of joining a GPO include:

• Cost savings: Leverage collective buying power to reduce expenses.
• Streamlined processes: Access to ready-to-use contracts with volume pricing.
• Support and expertise: Guidance on procurement best practices.

Those are the positive benefits of partnering with a national purchasing cooperative. To make the most of your relationship, however, you want to avoid these four common mistakes.

Mistake #1: Overlooking Profit vs. Non-Profit Structures

One of the most common mistakes is failing to evaluate whether a national purchasing cooperative operates as a non-profit or for-profit organization. This distinction directly impacts the cooperative’s priorities and the benefits it offers to members.

Non-profit cooperatives are designed to serve their members by focusing on maximizing savings and efficiency. For-profit cooperatives, like any for-profit corporation, prioritize revenue generation, which might affect the level of cost savings or the quality of service provided.

Understanding this difference helps you align your institution’s goals with the cooperative’s mission. If your school prioritizes long-term cost-effectiveness and mission alignment, a non-profit GPO is a better fit.

Mistake #2: Assuming You Can Use Contracts Without Full Alignment

Another common error is assuming you can immediately use a GPO’s contracts without fully aligning with their terms and processes. Educational institutions often make purchases based on contracts they believe are covered, only to discover later they haven’t met the cooperative’s requirements.

The keys to avoiding such mistakes are:

• Understanding the terms: Review the cooperative’s contract terms and conditions thoroughly.
• Establishing proper alignment: Ensure your institution has completed the onboarding process and received approval to use the contracts.

Without alignment, purchases may lead to non-compliance with procurement policies, creating unnecessary risks and administrative headaches.

Mistake #3: Failing to Check for Compliance

Ensure the cooperative’s agreements meet local, state, and federal procurement requirements.

Mistake #4: Not Understanding the Partnership Process

Many institutions dive into the process without fully understanding how to partner with a GPO. This can lead to delays or missed opportunities. Some partnerships require purchasing through specific suppliers while others give you the option to choose which contracts and suppliers you want to use.

Making sure you understand any restrictions is crucial. Look for a national purchasing cooperative that lets you opt into contracts at your discretion and enables you to work with any of their contracted suppliers that meet your needs.

Other Key Considerations When Choosing a National Purchasing Cooperative

Beyond avoiding the mistakes above, keep these additional factors in mind:

• Evaluate the cooperative’s track record: Research how successfully the GPO has served other educational institutions.
• Understand contract flexibility: Determine whether the contracts offered align with your institution’s evolving needs.
• Failing to Execute Proper Paperwork: Paperwork errors are another significant obstacle. Missing or incomplete documentation can delay access to the benefits of working with a GPO.
• Look for member support: Assess whether the GPO provides training or resources to help you effectively use their contracts.

These considerations help ensure your chosen cooperative provides maximum value and aligns with your institution’s needs.

How to Avoid These Mistakes and Make an Informed Choice

To select the right group purchasing education organization, follow these best practices:

• Conduct thorough research: Compare cooperatives to determine which best fits your goals.
• Engage your procurement team: Involve key stakeholders to evaluate compatibility.
• Request references: Speak with other schools or universities that have partnered with the GPO.
• Establish clear communication: Maintain open lines of communication with the cooperative’s representatives.

Taking these proactive steps ensures your institution benefits fully from partnering with a national purchasing cooperative.

E&I Cooperative Services is the only nonprofit member-owned organization that focuses exclusively on the education sector. Contact E&I at (800) 283-2634 to discuss your needs and learn more about the benefits of membership.