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It happens all the time. The head of the biology department at a mid-sized university needed to restock lab supplies. Wanting a fast solution, they turned to Amazon, where they could order beakers, pipettes, and cleaning solvents with just a few clicks. The prices seemed reasonable; they knew the brand names, and the free shipping sealed the deal.
A few weeks later, the university’s procurement office flagged the purchase. The cleaning solvents weren’t compliant with institutional safety regulations, the beakers arrived from an unauthorized supplier, and the pipettes—though cheap—were of lower quality than required. Worse, a GPO contract already in place could have provided the same supplies at a 20% lower cost, with guaranteed compliance and support.
This situation is not unique.
Many higher education institutions grapple with balancing convenience and compliance in procurement. While online marketplaces like Amazon offer ease of use, they don’t always provide the long-term value, regulatory compliance, or strategic benefits that group purchasing organizations (GPOs) deliver.
Higher education GPOs focus on the needs of colleges and universities. Unlike general marketplaces, they provide advantages that go beyond just transparent pricing. Benefits include:
So, what is a higher education GPO? It is a partner that can save you time and money and ensure you get high-quality goods and services that meet your compliance requirements.
Let’s look at how GPOs stack up against online marketplaces.
Group Purchasing Organizations | Online Marketplaces | |
Price vs. Total Cost | Negotiated pricing with cost predictability | Fluctuating prices, potential hidden fees |
Compliance & Risk | Pre-vetted suppliers meeting institutional standards | No guarantees on vendor compliance |
Customer Support | Dedicated account managers and procurement assistance | Self-service with limited support |
Supply Chain Stability | Long-term contracts ensuring availability | Prone to stockouts and delays |
Dynamic pricing on online marketplaces can mean significant variations in the costs of goods and services. It’s hard to forecast spend until you’re ready to order. Cooperative contracts through GPOs typically include price locks, which guarantee pricing or discounts. While there may be price adjustments during the terms of the agreement, you know when they’re coming.
Besides saving money, GPOs can save you time, meet institutional initiatives, and tailor agreements to your needs.
To get the most from your procurement strategy, start by analyzing your spending to identify where GPOs could provide greater value. E&I Cooperative Services offers a no-cost Strategic Spend Assessment (SSA) that compares your spend against cooperative contracts to find ways to reduce costs, bring more spend under contract, and consolidate suppliers to achieve greater volume discounts.
A hybrid approach to procurement is often the best pathway, leveraging GPOs for strategic purchases while giving departments some flexibility for low-cost items or one-time purchases. Some GPOs also offer eProcurement platforms enabling you to create punch-out catalogs with preferred vendors to further reduce maverick spending. Often tied to P-cards, you can set rules for purchase volumes and compliance.
Online marketplaces may offer convenience, but they often fall short in meeting your compliance, financial, and strategic procurement goals—especially in higher education, where you have to meet increasingly tight budgets and stringent requirements. GPOs provide a structured, reliable, and cost-effective solution, ensuring you maximize value while maintaining compliance and control.
Keep one thing in mind, however. Not all GPOs are the same. E&I Cooperative Services is the only nonprofit and member-owned cooperative that focuses solely on the education sector. With more than 6,000 academic institutions as members, E&I uses a competitive solicitation process to establish contracts with top-tier suppliers, delivering significant volume discounts and favorable terms tailored to the unique needs of higher education.
View available contracts or learn more about the benefits of becoming an E&I member. There is no cost to join and no minimum purchasing obligation.
