With labor and material costs continuing to climb, cooperative purchasing could be a great opportunity for your organization to save time and money. With cooperative purchasing, business owners combine forces into a single contract to enhance purchasing power for high-ticket items and everyday essentials, alike
Commercial roofing cooperative purchasing, for example, can help with your reroofing or maintenance needs. But, what’s the criteria to join a cooperative, and is there a fee associated with membership? These are questions we answer, so keep reading to find out more on cooperative purchasing.
Looking at Cooperative Purchasing
Cooperative purchasing is a procurement strategy in which multiple organizations, often from the public sector or similar industries, collaborate to purchase goods or services together. By joining forces, these entities leverage their collective buying power to secure better pricing and terms from suppliers. This approach enables cost savings, economies of scale, and increased efficiency in procurement processes. Usually, there isn’t a fee to join cooperatives.
Cooperative purchasing arrangements can encompass various sectors, such as education, government, or healthcare, and are typically governed by agreements and contracts that outline the terms and conditions of the collaboration. Ultimately, cooperative purchasing aims to maximize value and reduce expenses for participating organizations.
Organizations That Qualify for Cooperative Purchasing Programs
There are national purchasing cooperative organizations like The Interlocal Purchasing System (TIPS) and OMNIA Partners (both of which TEMA belongs to) that help entities like the ones listed below to pool purchasing power:
- Government agencies
- School districts
- Higher education
- Real estate
- Native American tribes
- Nonprofit organizations
TEMA’s Cooperative Purchasing Services
TEMA is proud to be named a vendor for construction needs through TIPS-USA and OMNIA Partners. This association allows members to forego the bidding process when purchasing either goods or services, setting competitive prices that can not be achieved otherwise.
TEMA Roofing Services is the only commercial roofing company in the Youngstown area to currently have this distinction. Want to learn more, check out our comprehensive guide to cooperative purchasing.
Types of Cooperative Procurement
There are two kinds of cooperatives: joint solicitation and piggybacking. Both types lead to cost savings, efficiency, and compliance. Each has their own set of unique qualities.
In a joint solicitation, multiple organizations collaboratively initiate a procurement process for a specific project or purchase. There’s a single document involved, and there’s equal say in vendor selection, terms, and conditions.
One organization leverages an existing contract that’s usually created by another entity. Similar goods or services are received without an active collaboration in the initial procurement process. The controlling organization – the one originally awarded the contract – retains control over terms and conditions, while other organizations adopt the existing contract.
How Does a Cooperative Contract Work?
Even if it’s part of your roof asset management plan (and in your budget), installing a new commercial roofing system can get costly, whether or not you were diligent about routine roof maintenance.
The first step is joining a cooperative; it can be a national purchasing organization like TIPS or OMNIA Partners, or something that serves similar organizations (for example, one for governmental entities, if that’s what you are). The rest of the process includes the following steps:
- The contracted commercial roofing company performs an inspection to assess your roofing needs.
- A roofing solution is designed and submitted to the cooperative (in your case, TIPS).
- TIPS reviews the proposal.
- Your organization receives the proposal.
- The project is scheduled and work starts.
Benefits to Cooperative Purchasing
Considering cooperative purchasing for your commercial roofing project is a smart move. You’ll be able to secure competitive prices on roofing materials and services, and whether you’re a private school or public agency, watching your bottom dollar is crucial.
Save Time and Money
Cooperative contracts streamline the procurement process, which saves time on bidding, negotiation, and contract development. As a result of the process, you’ll have a timely delivery of projects, with quality materials obtained at a competitive rate.
Compliance and sustainability can be compromised by accepting low bids and low-quality work outside of a cooperative purchasing organization. While you receive a lower than normal price, cooperatives include organizations with a wealth of industry knowledge and can help you navigate big ticket deliverables (like roofing projects).
TEMA is Your Commercial Roofing Contractor
All in all, commercial roofing cooperative purchasing is an efficient way to acquire best-in-class materials and services for those eligible to participate. Still unsure of where to start? Don’t worry – that’s what TEMA Roofing Services is here for!
For answers to specific questions related to commercial roofing cooperative agreements or collaboration, the best thing to do is contact TEMA Roofing Services for detailed assistance. We look forward to being your trusted roofing partner!