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In most colleges and universities, procurement teams have historically been viewed as buyers focused solely on transactional processes. In many cases, procurement responsibilities were delegated to department heads, or, in smaller schools, handled exclusively by finance team.
That’s all changed. Today’s procurement professionals are strategic-problem solvers, immersed in data analysis, research and negotiations, and advanced strategies, including category management in higher ed procurement and supply.
This shift presents challenges for schools with limited staff, stretched resources, and competing priorities. . There’s a shortage of talent across the education sector and intense pressure to reduce costs and do more with less. Institutions are increasingly turning to procurement teams to find new opportunities to save and reduce costs in light of today’s budget constraints.
At the same time, technology and product lines are evolving at a rapid pace. Pricing seems highly volatile and can change fast. Staying on top of it all and developing the expertise needed for effective category management in procurement for higher ed can be overwhelming.
Category management is a procurement strategy for grouping similar goods and services into categories and managing them collectively to optimize value. Unlike traditional procurement, which often focuses on individual purchases, category management takes a broader view to align procurement decisions with institutional priorities.
By consolidating purchasing power, fostering supplier partnerships, and analyzing data, category management drives cost savings and operational efficiency. It also enables procurement teams to focus on strategic objectives rather than merely transactional tasks.
Budget uncertainty and cutbacks have been well documented in recent years, and there appears to be even deeper cuts on the horizon for many schools. However, this isn’t the only challenge for procurement teams.
Many schools are still decentralized for a large volume of purchasing. Departments, schools, and campuses often operate independently—leading to redundant purchases and missed opportunities to achieve bulk savings. Such practices also make it difficult to monitor and meet institutional initiatives for sustainability, diversity, or equity when selecting suppliers.
At the same time, colleges and universities have strict procurement policies necessary for compliance, especially when public funds are used or grants have specific requirements.
Category management in procurement for higher ed can help overcome these challenges and produce the results you need.
Category management centralizes procurement for similar goods and services, reducing redundancy. For example, grouping purchases for IT equipment across departments ensures consistency and better pricing.
By analyzing spending patterns and negotiating bulk contracts, institutions can achieve significant cost savings. For instance, purchasing lab supplies for multiple departments from a single supplier may yield volume discounts.
A unified approach to procurement creates consistent processes, ensuring adherence to regulations and policies. This reduces the risk of audit findings or non-compliance.
Category management emphasizes long-term partnerships with key suppliers. By fostering collaboration, institutions can encourage innovation and secure favorable terms that benefit both parties.
Group purchasing organizations (GPOs) play a critical role in supporting category management for higher education institutions by leveraging collective buying power and providing procurement expertise. Here are four ways:
GPOs aggregate the purchasing needs of multiple institutions, enabling colleges and universities to secure better pricing for goods and services. This bulk purchasing approach aligns perfectly with the cost-optimization goals of category management, ensuring significant savings without sacrificing quality.
By working with a GPO, institutions gain access to pre-negotiated contracts and vetted suppliers. This simplifies procurement and reduces the administrative burden on in-house teams.
Cooperatives can bring specialized knowledge and negotiation expertise to the table. They continuously monitor market trends, evaluate supplier performance, and ensure that contracts meet compliance and institutional priorities.
You get access to industry insights and helpful tools like spend analysis. These tools help institutions identify cost-saving opportunities and evaluate supplier performance.
When you are looking for help with category management in procurement for higher ed, E&I Cooperative Services is here to assist you. E&I is the only nonprofit, member-owned sourcing cooperative that works exclusively on behalf of the education sector. With more than 6,000 members, E&I aggregates demand to achieve significant volume discounts from top-tier suppliers, delivering unmatched value for its members
Contact E&I Cooperative Services online or call (800) 283-2634 to talk to one of our education procurement experts.
