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

  • California District Debuts New High-School CTE Center

    The West Sonoma County Union High School District (WSCUHSD) in Sebastopol, Calif., recently held a ribbon-cutting ceremony for the new CTE Center at Analy High School, according to a news release. The district partnered with Quattrocchi Kwok Architects (QKA) for the facility’s design and GCCI for its construction, and funding came from local Measure A bond funds.

  • Western Kentucky University Breaks Ground on First Phase of $350M Student Housing Project

    Western Kentucky University (WKU) in Bowling Green, Ky., recently broke ground on the first phase of a $350-million student housing initiative, according to a news release. The university is partnering with Gilbane Development through a public-private partnership (P3) to replace aging residence halls and modernize on-campus living accommodations.

  • UPenn Announces Completion of New Veterinary Education Facility

    The University of Pennsylvania in Philadelphia, Penn., recently finished construction on an 11,800-square-foot veterinary education building, according to a news release. The Gail P. Riepe Center for Advanced Veterinary Education is the first dedicated classroom facility at the New Bolton Center, a large-animal hospital and campus about 35 miles west of the campus proper.

  • DLR Group Announces New Mid-Atlantic Higher Education Leader

    Integrated design firm DLR Group recently announced that it has promoted Principal Shawn Gaither, AIA, LEED AP, to the role of higher education leader in the Mid-Atlantic, according to a news release. Gaither has served with the firm for more than 20 years, most recently as the national higher education business development leader.