Procurement teams today are looking for an edge. Overcoming rising prices, tight budgets, and pressure to lower costs, without sacrificing quality, is a challenge. A higher ed group purchasing organization can help, streamlining procurement and saving you time and money.
Here are answers to some of the most frequently asked questions to help you understand how higher ed group purchasing organizations work and how you benefit.
FAQs About Higher Ed Group Purchasing Organizations
What Is a Group Purchasing Organization (GPO) in Higher Education?
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higher ed group purchasing organization leverages the collective purchasing power of multiple colleges and universities to negotiate pricing and contract terms with suppliers. By aggregating demand across institutions, GPOs help members achieve cost savings and operational efficiencies, along with providing access to high-quality products and services.
How Do GPOs Benefit Colleges and Universities?
GPOs offer several benefits including:
- Significant volume discounts that are typically larger than schools can negotiate on their own
- Access to pre-negotiated cooperative contracts from top-tier suppliers
- Reduced administrative overhead to streamline procurement processes
- Market intelligence and category experts to competitively solicit suppliers
- Compliance checks to ensure agreements meet regulatory requirements
- Standardized terms and conditions with flexibility for purchasing
What Types of Products and Services Can Be Purchased Through Higher Education GPOs?
Higher ed group purchasing organizations typically offer multiple suppliers across a broad range of goods and services.
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PRODUCTS AND SERVICES — HIGHER ED GROUP PURCHASING ORGANIZATIONS
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| Administrative Services |
Food and Food Services |
| Athletics |
IT and Cybersecurity |
| Emergency Preparedness |
Logistics and Travel |
| Facilities |
Office and Classroom Furnishing |
| Lab, Research, and Scientific |
Professional and Consulting Services |
| Maintenance, Repair, and Operations (MRO) |
Safety and Wellness |
| Financial Services |
School Security |
How Much Can Institutions Save by Joining a GPO?
Savings vary depending on the size of the institution, the volume of purchases, and the specific contracts used. On average, higher education institutions can save between 10% and 25% on procurement by leveraging cooperative agreements.
You also save time and streamline the procurement process, which lowers your costs as well.
Are There Membership Fees Associated with Joining a Higher Education GPO?
Each GPO operates differently. Some require membership fees and/or minimum purchasing volumes. E&I Cooperative Services is the only member-owned, non-profit procurement cooperative exclusively focused on serving the education community to E&I is
free to join and does not require any set amount of purchase. In addition, E&I offers
patronage rebates to its members, based on participation during the year.
How Do GPOs Negotiate Contracts with Suppliers?
In most cases, procurement teams at GPOs use strategic sourcing to meet member needs. A competitive solicitation process sources suppliers, and the aggregated demand of member institutions yields significant volume discounts. Cooperative agreements also typically include service level agreements, compliance requirements, and pricing protections. Some may also include additional incentives for higher levels of transactions.
Can Small Colleges Benefit from Joining a GPO, or Is It Only for Large Institutions?
While large universities can amplify their purchasing power, small colleges often see the greatest impact because they gain access to pricing and contract terms that would be difficult to negotiate independently.
What Should Institutions Consider When Choosing a GPO?
When selecting a GPO, institutions should evaluate the contract portfolio, pricing structure, supplier diversity offerings, compliance support, and administrative ease. Other important factors include the flexibility of contracts, the GPO’s experience in higher education, if the GPO offers additional support or insights, if the procurement solutions that enhance long-term efficiencies, and potential cost savings.
One important thing to know is that there is only one member-owned, nonprofit sourcing cooperative that focuses solely on the education sector—E&I Cooperative Services. This focus provides deep insight into the unique needs of higher education, crafting cooperative agreements that align with institutional priorities.
Are There Any Drawbacks to Using a GPO for Procurement?
There may be some limitations on the type of contracts offered. For example, if a college or university needs a highly specialized purchase, it may not be available through the GPO.
Some GPOs also require you to commit to purchasing with certain suppliers. E&I Cooperative Services does not. You are free to contract with anyone you want.
How Do Higher Ed Group Purchasing Organizations Adapt to Member Needs?
Higher ed group purchasing organizations employ procurement professionals and actively seek involvement from their members. Along with monitoring market trends and interactions with suppliers. GPOs work to understand member needs and help source the goods and services members want.
Can Institutions Still Negotiate Their Own Contracts if They’re Part of a GPO?
Yes. You remain in control of your purchasing. Most schools leverage GPOs for some portion of their procurement portfolio while negotiating other contracts independently.
How Do Higher Ed Group Purchasing Organizations Handle Compliance and Regulatory Requirements?
GPOs ensure compliance by aligning contracts with state and federal procurement regulations, accreditation standards, and institutional policies. They work closely with legal and procurement teams to maintain transparency and regulatory adherence.
If you have more questions about how a higher ed group purchasing organization can help you save time and money, contact the procurement experts at E&I Cooperative Services. 
