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

  • Creating a First and Lasting Impression with Thoughtful, Sustainable Design

    Clemson University’s Nieri Family Alumni and Visitors Center serves as the new front door to campus, anchoring the Tiger experience through each step in the student journey.

  • Kimball International Launches New Furniture for K–12 Classrooms

    Commercial furnishings company Kimball International recently announced the launch of four new products designed for a variety of professional environments, including K–12 schools, according to a news release.

  • New Kent State Academic Building Earns LEED Silver Certification

    Kent State University in Kent, Ohio, recently announced that its newest academic building, Crawford Hall, has earned a LEED Silver certification from the U.S. Green Building Council, according to a news release. The facility was recognized for its innovative design, water conservation technologies, energy-efficient systems, and sustainable construction materials, among other features.

  • ClassVR headsets

    Avantis Education Revamps Hardware for ClassVR Solution

    Avantis Education recently announced the launch of two new headsets for its flagship educational VR/AR solution, ClassVR. According to a news release, the Xcelerate and Xplorer headsets expand the company’s offerings into higher education while continuing to meet the evolving needs of K–12 users.

Digital Edition