Boost Efficiency & Save With Smarter Cooperative Purchasing

By Jennifer Sulentic, CompareCoOps

The public sector procurement process can be confusing and time-consuming, but there are plenty of opportunities to boost efficiency and savings.

Government agencies tasked with purchasing the goods and services they need to function must be cognizant of local and federal regulations put in place to ensure transparency and compliance when it comes to spending taxpayer dollars. Additionally, certain contracts within the public sector are subject to specific value thresholds, and keeping track of all the information while staying on top of regulatory requirements can be daunting.

Purchasing cooperatives allow groups of businesses in the private sector to join together to buy the goods and services they need to run their businesses. Likewise, Government Purchasing Cooperatives were created to give public sector agencies the ability to share procurement contracts between entities. This means that various state and local governments could buy the goods and services they need from the same contracts.

Public sector agencies use purchasing cooperatives to save time and money when it comes to the procurement process. Purchasing managers and contract buyers can bypass the competitive bid process and immediately access contracts that meet all of their state-specific requirements. Not only that, but buyers can rest assured they’re getting fair and affordable pricing thanks to the competitively bid contracts that are already in place.

The use of purchasing cooperatives spans well over 100 years and there are now 29,000 cooperatives that operate within every aspect of the U.S. economy. From banking and insurance to the nation’s electrical distribution, cooperative purchasing has a pivotal role in how we procure the things we use every day.

Why public entities need cooperative purchasing

Business managers and procurement officers are continuously trying to procure the highest quality products and services for the best possible value. Purchases must stay within compliance and supplier information must remain organized, all while dealing with lengthy and expensive RFPs and slow internal processes. There is a need to simplify the procurement process and there are several benefits of utilizing cooperative purchasing.

Save time & reduce costs

Above all, the use of cooperative purchasing will save agencies time and money. The amount of time and due diligence it takes to sift through the right number of suppliers, to find the best value, and make fair comparisons can be overwhelming. Not to mention, often this is a manual process. Purchasing cooperatives offer contracts that have already been established. Buyers no longer need to go to bid or review proposals, they can simply choose the contract that works best for them.

Likewise, the purchasing power of the cooperative has been leveraged to secure the fairest, most reasonable pricing, letting buyers feel confident knowing they’re getting the best deal available to them.

Alleviate resource pressure

A 2018 survey found that 42% of staffers in public sector procurement felt overworked. Demand is increasing, yet staff are already dealing with limited resources. With that, and the desire to move toward more efficient procurement processes, buyers are pushing more spend toward cooperative contracts to piggyback off of other agencies.

Increase flexibility

The use of cooperative purchasing contracts allows for more variety when it comes to suppliers and vendors, and more product flexibility. This is especially beneficial in the wake of the COVID-19 pandemic where supply chains all over the world have been disrupted. Cooperative purchasing ensures there are always alternative options and products available to be delivered on time and on budget.

Secure superior contracts and better-quality products

Since coops already have contracts in place that meet local, state, and federal requirements, and a public entity has completed the lengthy competitive bid process, it’s easier for government agencies to secure access to superior contracts and better-quality products by using cooperative purchasing.

How to best utilize cooperative purchasing to boost efficiency in the public sector

Anyone familiar with the public sector knows that traditional procurement methods are lengthy, oftentimes manual, and outdated. Thankfully, purchasing cooperatives give pubic agencies a way to improve upon some of those tedious processes. We’ve outlined some pro-tips below when it comes to utilizing cooperative purchasing to maximize efficiency when it comes to procuring in the public sector.

Tip #1: Utilize modern technology

It may not be realistic to think that every government agency is able and willing to update to the newest procurement technology system. Even if you’re up for the challenge, convincing stakeholders of the need for change will most likely happen at a snail’s pace. In the meantime, it’s helpful for procurement managers and buyers to be aware of the tools and resources that are available that allow them to be as efficient as possible.

CompareCoOps is a free-to-use digital platform that offers a faster and easier way to leverage the benefits of cooperative purchasing and helps save money on your purchases. It's not a cooperative, but a secure, independent technology platform that agencies can use to access a range of cooperative contracts from multiple cooperatives, identify suppliers, get competitive quotes, and report on contract usage.

Tip #2: Cut costs, not compliance

The pressure to find new ways to cut costs and reduce budget each fiscal year is real. Not only does cooperative purchasing allow you to find contracts that offer the best value, it significantly reduces the administrative costs and resources needed associated with traditional procurement processes. The previously long, drawn-out methods that normally took months are cut down to a matter of days or weeks thanks to cooperative contracts, all without sacrificing compliance.

When you compare different coop contracts, your agency gains wider visibility over the contracts that are currently available. From sourcing to awarding the supplier, when everything is done within the same platform, it reduces the chance of missed opportunities.

Tip #3: Stay ahead of disruption

COVID-19 came in like a wrecking ball, disrupting procurement and supply chain like never before. Cooperative purchasing ensures there are always alternative vendors and suppliers available when agencies find themselves needing to pivot thanks to shortages, lockdowns, closures, and transportation delays.

One of the main advantages of using CompareCoOps is that it allows public agencies to diversify their supplier pools and makes it easier to connect to new contracts if and when your current suppliers aren’t able to deliver.

Get the most out of cooperative purchasing with CompareCoOps

CompareCoOps is not a cooperative or supplier, it's a valuable sourcing tool that brings public buyers and suppliers together on cooperative contracts. It’s transparent and user-friendly. Best of all, CompareCoOps is completely free for school districts to use.

CompareCoOps is hosted on the trusted VendorPanel platform with over 64,000 users worldwide. We’re backed by investors with a proven track record in the B2B SaaS marketplace and a 10-year-old award-winning technology.

Sign Up with CompareCoOps or learn more about the platform here.