The financial pressure on small and mid-sized institutions is immense.
Just look at what’s happening in Ohio as an example.
Wittenberg University in Springfield was recently flagged by the Higher Learning Commission as being in financial distress, meaning it carries more debt than income. In 2023 alone, Wittenberg owed $25 million, and the institution has since cut staff and programs in an effort to regain stability.
Meanwhile, Antioch College operates with a budget of just over $9 million but continues to grapple with longstanding deficits, including an $8.4 million shortfall revealed in a forensic audit.
Central State University, another small institution, reported a $3 million deficit for fiscal year 2024 after incurring a $14 million deficit the previous year.
That’s just in one state. Disruptions to federal funding, endowments, tariffs, and rising prices are impacting nearly every institution. If financial aid is affected, it’s a perfect storm. Analysts at Moody’s put it this way: “Only a select group of wealthy institutions have the financial flexibility to manage such a scenario without likely seeing steep enrollment decline.”
With a critical eye on every dollar spent, partnering with group purchasing organizations (GPOs) is a proactive step to take control of costs. A GPO buying group enables institutions to leverage the collective buying power of many organizations, unlocking discounts, efficiencies, and protections to ease the financial burden.
With an education-focused GPO like E&I Cooperative Services, you have access to competitively solicited contracts tailored to the procurement needs of colleges and universities. Small and mid-sized institutions can stretch their dollar further through access to cooperative agreements and volume discounts typically reserved for much larger schools.
Instead of each school conducting lengthy and resource-heavy RFPs, they can select from competitively solicited contracts that meet compliance standards.
The numbers speak for themselves. Higher education institutions that participate in GPO purchasing typically save 10–15% or more on their purchases. For many colleges, especially those with multi-million-dollar procurement budgets, these savings can accumulate to millions of dollars over time, providing critical funds to support student services, academic programs, or debt reduction.
Beyond direct cost savings, GPO buying groups offer value through their extensive supplier relationships, contract management expertise, and sector-specific insights. Members can find contracts in diverse categories, including IT, facilities management, and scientific equipment, which directly impact campus operations and budgets.
In addition to financial savings, GPO buying groups offer tremendous operational efficiencies.
For small procurement teams, managing the full procurement cycle from RFP development to supplier negotiations to contract management can be overwhelming. By using competitively solicited cooperative contracts, teams save time and reduce their administrative burden.
This allows procurement professionals to focus on higher-value strategic initiatives, such as supplier diversity programs, sustainability efforts, and long-term sourcing strategies. It also helps institutions move faster, responding more quickly to evolving financial challenges.
Institutions also benefit from built-in compliance with regulatory requirements and best practices. This reduces legal risks and audit exposure, an especially important advantage for finance and procurement teams with limited internal resources.
With rising costs and potential increases to goods from overseas; cooperative contracts can help with price stability. Most agreements span multiple years and offer stable pricing or scheduled price resets. This can help you avoid sudden price hikes and budget for price adjustments to reduce volatility.
While large institutions may have big procurement teams, smaller colleges and universities may have limited resources. Some may have one or two-person teams or delegate purchasing to finance teams. This can limit the amount of time and energy spent on purchasing decisions.
GPO buying groups have extensive resources. For example, E&I Cooperative Services has a team of procurement experts, many of whom came directly from higher education. From category specialists with deep knowledge of specific markets, to data analysts who can help evaluate your spending to uncover hidden savings or opportunities for consolidation; E&I provides the expertise and support smaller institutions need to buy smarter and stretch their budgets further.
E&I also offers an online community, EdPro Hub, where procurement leaders share best practices and proven strategies for success.
With tightening budgets, uncertain funding, and heightened accountability, small and mid-sized colleges and universities must use every tool available to optimize spending and strengthen operations. GPO purchasing provides a proven pathway to reduce costs, streamline procurement, and redirect savings to the core mission of education.
E&I Cooperative Services is the only member-owned, non-profit sourcing cooperative dedicated exclusively to education. Discover hundreds of ready-to-use cooperative contracts and learn how easy it is to become a member—at no cost. We invite you to join our community today.
