Buying On A Budget

Over the last several years there has been a proliferation of purchasing cooperatives in the education space, and it’s easy to see why. Procurement professionals continue to face the daunting challenge of spending less and getting more. Be it through increased efficiencies, aggregated knowledge or leveraging resources, cooperative purchasing contracts can help.

Strength in Numbers

The sheer volume of purchasing power aggregated by the size of the cooperative provides individual members with economies of scale they would likely not be able to achieve on their own. Add to that the considerable time savings associated with researching new product categories, sourcing competitive quotes and negotiating pricing. By eliminating time spent on these tasks, resources can be reallocated to focus on more strategic projects.

Cooperative contracts can also represent a revenue generating tool. On top of exclusive savings and rebates, a true member-owned cooperative typically shares its profits with its members in the form of “patronage” refunds, which are based on a member’s annual purchases.

Strategic Value

“Resources are tight and are likely not going to improve in the future,” says Barry Swanson, chief procurement officer at the University of Kentucky. “Cooperative contracts require less time to develop and implement, while offering competitive prices under terms and conditions that meet our needs. Savings are achieved more efficiently, freeing up these limited resources for use in protecting the individual institution’s core mission of teaching, research, and service.”

According to Swanson, the combined spend of the cooperative creates an opportunity to attract quality suppliers, in addition to providing the leverage to negotiate the best possible pricing and terms. And then there’s the pool of knowledge created by a cooperative community.

“Cooperatives create a community that learns from each other as it works together,” he said. “Innovative processes, benchmarking, problem solving, and case studies are examples of valuable tools shared among cooperative members.”

This article originally appeared in the issue of .

Featured

  • Kenall Introduces Millenium Flair Series

    In a move aimed at modernizing institutional lighting without compromising on durability or performance, Kenall has launched its new Millenium Flair series, according to the Kenall website.

  • Springfield Breaks Ground on $53.7M Pipkin Middle School Rebuild

    Construction is underway on a new, state-of-the-art Pipkin Middle School in Springfield, Mo., a major step in Springfield Public Schools’ (SPS) long-term facility improvement plan, according to local news. The $53.7-million project officially broke ground in early June, following years of planning and community input aimed at modernizing aging infrastructure and addressing student capacity concerns.

  • Dallas ISD Debuts New Peabody Elementary School

    The Dallas Independent School District in Dallas, Texas, recently announced the completion of the new facility for George Peabody Elementary School, according to a news release. The district partnered with Pfluger Architects and REEDER Construction on the 70,807-square-foot replacement campus, which has the capacity for 550 students.

  • cutaway view of a modern school building, showing various rooms and zones

    Layering AI into HVAC Systems Shows Reduction in Carbon Emissions

    Heating and cooling systems are just one of the many new ways that AI can be integrated into schools. According to a new study from Schneider Electric's Sustainability Research Institute, AI-powered HVAC systems in schools can lead to significant carbon emissions savings.

Digital Edition