PPEx discovered 3 critical cooperative purchasing challenges limiting Public Agencies’ use

Cooperative purchasing is underperforming. There are more than 90,000 independent state, local and education government agencies (SLED) in the United States, that collectively spend over $1.5 Trillion annually on products and services to support operations.

Despite increased awareness, progress, and a proliferation of new Cooperatives over the past 30 years, it is estimated that SLED cooperative contract spend is $15 Billion, or less than 1% of the $1.5 Trillion annual spend by SLED.

Enter the Public Purchasing Exchange (PPEx) founded by Steve Hamil, Founder & former Leader of U.S. Communities, and Dave Trudnowski, former Government Sales Leader for Office Depot. In cooperation and collaboration with nationally recognized Public Procurement Leaders & Agencies, including San Diego & Los Angeles Counties, PPEx set out to discover why cooperative purchasing was underperforming and the potential opportunities to fulfill its promise and potential by accelerating use.

PPEx discovered 3 critical cooperative purchasing challenges limiting Public Agencies’ use:

• Access. No single location to facilitate review of cooperative contract options.
• Convenience. A fragmented network of Cooperatives, Suppliers, and contracts.
• Time. Best overall value due diligence equal to or greater than time to bid.                                                    

After a multi-year effort to address cooperative purchasing challenges, PPEx is introducing the Universal Cooperative Purchasing Hub (UCPH) to accelerate Public Agency access, convenience, and use of cooperative purchasing contracts.

UCPH features a state-of-the-art eMarketplace as a virtual technology hub or place open for all Public Agencies, Coopertives and Suppliers to co-locate and share cooperative contracts and Purchasing Public Agencies to access, shop, compare and buy.

Drawing on the co-location concept proven by fast food restaurants, gas stations and cars, co-location of cooperative contracts will drive public agency traffic, expand choices, invite comparison, and grow use and sales in one convenient location.

PPEx’s next mission is to build a Public-Private Partnership (P3) of Public Agencies, Cooperatives and Suppliers based on a common interest in accelerating the use of cooperative purchasing. Increasing SLED cooperative annual spend by just 0.5% to 1.5% of total SLED annual spend increases by 50% Public Agencies’ purchasing power, Cooperatives’ participation, and Suppliers’ sales. The full promise and potential of cooperative purchasing is within reach.

Learn more. Attend a CAPPO Educational Session at the CAPPO Conference led by your colleagues-Jennifer Alford, Gerry Plummer & Johnnie Terry- “A New Era of Cooperative Purchasing”, Wednesday February 2, 2022, 8:30-9:45 am at the CAPPO Conference. Visit our website www.ppexhub.com .