Skip to main content
Add as a preferred source on Google

Buying On A Budget

  • 11/01/17

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

  • Auburn University Debuts $224M STEM + Agricultural Sciences Complex

    Auburn University in Auburn, Ala., recently opened its new $224-million STEM + Agricultural Sciences Complex, the largest research construction project in the university’s history, according to university news. The facility measures more than 265,000 square feet and brings six departments from the College of Agriculture and College of Sciences and Mathematics together under one roof.

  • University of Kentucky Reopens Scovell Hall

    The University of Kentucky recently reopened Scovell Hall, part of the Martin-Gatton College of Agriculture, Food and Environment (CAFE), following comprehensive renovations to the 120-year-old facility in Lexington, Ky., according to a news release.

  • Fayetteville State University Opens New College of Education Building

    Fayetteville State University (FSU) in Fayetteville, N.C., recently celebrated the opening of a new $69.3-million College of Education building, according to a university news release.

  • Missouri Child Development Center Completes $2.3M Expansion

    The Urban Sprouts Child Development Center in St. Louis, Mo., recently announced the completion of a $2.3-million expansion and adaptive reuse project, according to a news release. The new space includes a retail café, outdoor learning space, and a support office building.