E&I understands the unique challenges colleges and universities face – from budget constraints and compliance requirements to diversity and sustainability goals and everything in between.
By combining our expertise, portfolio, and services, we can help your institution save time, control costs, and optimize your procurement process.
Browse our competitively solicited contracts with industry-leading suppliers to find products and services for every corner of campus.
No need to go out to bid -- we've gone through the RFP and contracting process for you, so you can use our contracts immediately.
Reduce costs with supplier-driven rebates, and benefit from our unique patronage program, which distributes our year-end net income based on contract use.
Equipped with a deep understanding of education, our Member Representatives deliver localized attention and support to facilitate your unique needs.
Whether you’ve been unable to implement eProcurement technology or are looking to enhance your existing platform, we offer several options to best fit your needs and budget.
With an SSA, we review and analyze your spend data for opportunities to reduce costs, bring more spend under contract, and maximize control and efficiencies.
We proudly act as an extension of your procurement department. It’s easy to become a member – and membership is free with no minimum usage requirements.
Higher education procurement continues to evolve along with challenges. Colleges and universities are facing significant budget constraints, and there’s uncertainty moving forward. Sector analysts at Moody’s report that state-funded colleges generally expect increased state funding for the 2025–2026 school year. However, about a third of private universities and 20% of public institutions should expect “compressed margins and a limited ability to further reduce costs.” This would likely result in operating deficits that could exceed 2%.
For procurement and finance teams managing purchasing, this means more pressure to reduce costs and find efficiencies. Yet, higher rates of inflation and the impact of potential tariffs could push prices higher. Even the most optimistic outlooks forecast the inflation rate at 2% or higher.
Traditional procurement methods, such as lengthy RFP processes and independent supplier negotiations may not be able to produce the cost savings needed to meet budget constraints against this economic backdrop.
One effective solution is to increase cooperative sourcing for higher education. By leveraging group purchasing power, institutions can streamline the procurement process, secure better pricing, and improve supplier relationships.
This guide explores the essentials of a strong procurement system, the impact of cooperative sourcing for higher education on ROI, and the role of digital procurement tools in maximizing cost savings.
A well-functioning procurement system is essential for financial efficiency and operational success in higher education. The foundation of a strong system includes:
It’s often hard for procurement teams to focus on these components due to the volume of goods and services they manage. So, finding efficiencies to reduce the workload and turn buyers into strategic analysts is essential to realize significant change.
Strategic sourcing transforms traditional purchasing into a proactive, data-driven process that aligns procurement decisions with your school’s goals. It’s a strategic approach that includes:
By shifting from transactional purchasing to strategic sourcing, you can reduce costs and improve quality and service levels.
You need to justify every expense and adhere to strict budget and compliance regulations. An effective procurement process is structured to meet these goals.
You must maintain clear documentation and reporting processes to track all spending and ensure responsible use of institutional funds, including:
Procurement teams must navigate a complex landscape of regulatory requirements while maintaining an efficient and effective procurement process. This becomes even more challenging when you need to balance a long list of initiatives, such as:
Effective supplier relationship management goes beyond negotiations to create strategic partnerships that deliver long-term value. This includes:
By viewing suppliers as strategic partners rather than just vendors, you can unlock greater value through improved service levels, collaboration, and innovation. Strong relationships can often yield early access to new products or services.
Traditionally, institutions relied on RFPs to solicit competitive bids. However, this process is time-consuming and resource-intensive.
A more efficient approach involves cooperative sourcing for higher education, which grants access to a broad network of suppliers that offer competitive pricing and favorable contract terms. Many colleges and universities are also leveraging e-sourcing tools, which provide digital marketplaces where procurement professionals can compare suppliers, analyze pricing trends, and streamline purchasing decisions.
Most colleges and universities utilize a mix of RFPs, cooperative agreements, and targeted purchases for specialized goods or services. Procurement teams need to balance these efforts to find the most cost-effective and efficient process.
Not all suppliers are created equal. Higher education institutions should evaluate potential suppliers based on their ability to deliver high-quality products on time and within budget. Regulatory compliance is another critical factor. Suppliers must meet institutional, state, and federal guidelines, ensuring that all procurement activities align with best practices.
By monitoring and measuring performance with specific KPIs, you can create an objective measurement, ensuring suppliers deliver on your goals.
Wholesale purchasing can significantly reduce costs, but finding the best sources requires strategic planning. Many large universities negotiate bulk pricing directly with manufacturers or major distributors, securing discounts based on high-volume purchases.
However, smaller institutions often struggle to access wholesale rates independently. This is where cooperative sourcing for higher education provides a key advantage. By aggregating demand across multiple colleges and universities, sourcing cooperatives allow institutions to benefit from wholesale pricing and volume discounts, regardless of size.
Smaller colleges and universities often face bigger challenges in securing wholesale pricing due to lower purchasing volumes. Cooperative sourcing levels the playing field, allowing smaller institutions to access the same cost savings as larger universities by pooling resources. Partnering with cooperative sourcing for higher education leverages bulk buying power, allowing you to opt into cooperative agreements that offer significant wholesale discounts.
B2B portals offer a convenient way for institutions to source products and compare pricing. These digital marketplaces connect higher education buyers with a wide range of suppliers, offering real-time pricing and bulk purchase options.
However, B2B portals come with certain limitations.
Unlike E&I’s cooperative contracts, which are competitively solicited for the education sector, B2B marketplaces often provide standard commercial pricing that may not align with your institution’s procurement goals. Quality control can also vary greatly, requiring procurement teams to conduct more thorough research before committing to a supplier.
While B2B portals can be a useful tool in a broader procurement strategy, they are best used in combination with cooperative agreements and e-sourcing tools to ensure both cost-effectiveness and compliance.
E-sourcing tools can help streamline supplier selection, bidding, and contract management, reducing the administrative burden and improving efficiency.
One of the most powerful features of e-sourcing tools is reverse auctions, where suppliers compete to offer the lowest price. This increases competition and drives down costs. Additionally, many e-sourcing tools provide real-time data analytics, allowing you to track spending trends, identify cost-saving opportunities, and ensure compliance with procurement policies.
E-procurement solutions can also help you reduce maverick spend and bring more overall spending under contract. You can centralize purchasing across departments with punch-outs to catalogs from approved vendors at contract rates to lower costs and provide greater control.
The RFP process is essential for securing competitive bids, but it’s time-consuming. It can take months to complete the required solicitation, notification, and evaluation—typing up considerable administrative resources and delaying fulfillment.
Cooperative sourcing for higher education offers an attractive alternative, especially for commodity products. By leveraging pre-negotiated cooperative contracts, institutions can generally achieve greater cost savings than the traditional RFP process.
Cooperative agreements are competitively solicited. Because of the volume of business they represent, from hundreds or thousands of schools, they typically result in greater volume discounts than schools could procure on their own.
You also benefit from the collective knowledge of other members in the cooperative as well as a team of procurement professionals and category experts. This can help you apply proven strategies to reduce costs and streamline your procurement process.
Cooperative sourcing for higher education provides a powerful solution, enabling colleges and universities to maximize their purchasing power, reduce costs, and improve supplier relationships. They offer a solution to today’s challenges.
Partnering with E&I Cooperative Services gives you access to an extensive portfolio of contracts tailored to the needs of higher education. E&I is the only member-owned nonprofit sourcing cooperative that works exclusively in the education sector on behalf of its more than 6,000 academic institutions. This focus results in competitively solicited contracts that match the needs and goals of schools. Negotiations target significant cost reductions through aggregated demand, while ensuring compliance with regulations and internal initiatives.
At E&I. you’ll find like-minded individuals, many of who come from higher education institutions in procurement leadership positions. They understand the challenges and are dedicated to making your workload easier and meeting your goals.
What is cooperative sourcing for higher education?
Cooperative sourcing for higher education is a procurement strategy where multiple colleges and universities pool their purchasing power to secure better pricing, terms, and service agreements from suppliers. By aggregating demand across institutions, cooperative sourcing helps schools streamline procurement, reduce costs, and improve operational efficiency.
How does cooperative sourcing differ from traditional procurement methods?
Traditional procurement methods, such as issuing individual RFPs or negotiating directly with suppliers, can be time-consuming and not always yield the cost savings you need. Cooperative sourcing eliminates many of these inefficiencies by leveraging pre-negotiated contracts that have already undergone a competitive solicitation process. This allows you to access volume discounts and reduce your administrative burden.
What types of products and services can be procured through cooperative agreements?
You can access a broad range of cooperative agreements that cover just about any type of goods or services you need, including:
E&I works closely with its members to identify other areas of need and competitively source suppliers for procurement teams.
How can cooperative sourcing help institutions manage budget constraints?
Cooperative sourcing can help you maximize your budget by securing lower prices through volume discounts and competitively solicited contracts. Suppliers are also incentivized by the volume of sales these cooperative agreements represent, typically offering larger discounts than you could achieve individually.
Can institutions still use their preferred suppliers while participating in a cooperative?
Yes, cooperative sourcing does not eliminate your ability to work with preferred suppliers. You can maintain relationships with any supplier you want while having the option to join cooperative contracts that complement your existing supplier network.
What are the key benefits of joining a cooperative sourcing organization?
Benefits of joining a cooperative sourcing organization include:
E&I Cooperative Services has a unique patronage program, which distributes annual refunds based on your purchases—helping you generate revenue.
Are there any membership fees or costs associated with joining a cooperative?
While some group purchasing organizations (GPOs) require membership fees or purchasing minimums, E&I Cooperative Services is free to join, and there is no purchasing obligation.
How does cooperative sourcing impact supplier diversity initiatives?
Many cooperative sourcing organizations actively support supplier diversity initiatives by including contracts with minority-, women-, and veteran-owned businesses (MWVBEs). Institutions can select cooperative agreements that align with their diversity goals, ensuring they meet regulatory requirements and institutional commitments without sacrificing cost savings. Learn more about E&I’s Tier 1 diverse suppliers and policies.
Learn how E&I Cooperative Services can help your institution achieve long-term cost savings and procurement efficiency by contacting us today. You can call 1.877.MYEANDI (877.693.2634).
