7 Features to Look for Before Joining a Procurement GPO for Higher Education

Funding concerns. Rising costs. Deferred maintenance. Increased pressure. There’s a long list of challenges that educational institutions face when managing procurement. Balancing the needs of your college or university while also ensuring you meet budget goals can be stressful.

Group purchasing organizations (GPOs) for higher education can help. However, each GPO has a slightly different mission and operates in its own way. So, you need to find the right GPO that aligns with your institution’s goals and helps you overcome these challenges.

We’ll explain the key considerations to find the right fit, but let’s start by answering the question: What is a GPO for higher education?

What Is a Group Purchasing Organization for Higher Education?

A group purchasing organization aggregates demand across its members to secure volume discounts from suppliers. GPOs negotiate contracts with standardized terms and make them available to members. This process streamlines procurement and generally results in significant savings.

Key Considerations in Choosing a Higher Ed GPO

When evaluating procurement GPOs for higher education, there are key features to consider.

1. Cost Savings Potential

When partnering with a GPO, you want to maximize your potential savings. Look for an organization that offers cooperative contracts that can help you save. Ask about its ability to leverage collective buying power to negotiate favorable pricing and terms with suppliers.

2. Contract Diversity and Quality

Seek GPOs that offer a wide range of contracts covering a variety of goods and services relevant to higher education. Before you join a GPO, look at their contract portfolio to ensure it aligns with your institutional priorities. This should include common purchase categories and the resources to help you meet diversity and sustainability goals.

3. Membership Structure and Fees

Consider the GPO’s membership model and associated costs. Some GPOs charge membership fees or require minimum purchasing commitments. Others, like E&I Cooperative Services, offer free membership for higher education institutions and allow members to choose only the cooperative contracts they want, with no minimum requirements.

4. Higher Education Specialization

Choose a GPO that focuses specifically on the needs of colleges and universities. A specialized GPO will understand the unique challenges and requirements of schools and negotiate contracts with terms and conditions that meet institutional goals.

There are plenty of GPOs, but E&I Cooperative Services is the only member-owned nonprofit sourcing cooperative that focuses exclusively on the education sector. This focus produces deep insight into the unique needs of higher education, competitively soliciting contracts to meet these needs. As a nonprofit, E&I minimizes overhead to ensure schools can maximize savings. Any proceeds are returned to members in the form of patronage refunds based on program participation throughout the year.

5. Procurement Expertise and Support

Look for experience. The best GPOs will be staffed with procurement experts who have specialized knowledge in higher education purchasing. They should also have category experts who can provide deep insight into particular goods and services. E&I, as an example, has been in the education procurement industry for 90 years.

When you join an education-focused cooperative, you also benefit from the collective knowledge of its members. Look for a GPO that has active members who share best practices and proven solutions.

6. Supplier Networks and Relationships

Evaluate the GPO’s ability to attract a large pool of suppliers and maintain strong relationships with them. This can lead to more competitive bidding and better pricing for member institutions.

Review the contracts that are available and what RFPs are in the pipeline to ensure they align with your procurement priorities. The best GPOs engage actively with their members to make sure they are meeting their needs.

7. Risk Management and Compliance

Assess the GPO’s ability to secure contractual commitments, including liability and product quality assurances. A strong GPO should help transfer certain risk away from individual institutions and ensure compliance with relevant regulations.

Which GPO Is Right for You?

Finding the right group purchasing organization for your college or university can help you reduce your administrative burden and lower your procurement costs. The best GPOs offer more than just discounts—they provide expertise, contract diversity, and a collaborative network tailored to the unique needs of higher education.

So, what is GPO for higher education? It’s a strategic partner that can help you save time and money, streamlining your procurement and delivering significant volume discounts. This lets you optimize your resources and focus on your core mission.

View available contracts through E&I Cooperative Services or connect with our team of procurement professionals to learn more about how we can help.

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