Did you know that you can potentially secure the services that your business needs (cost-effectively) through cooperative purchasing?
Cooperative contracts are well-known to provide great benefits for public agencies (schools, municipalities, etc.), helping buyers save time and money when searching for services like commercial roofing. But, even more importantly, cooperative purchasing organizations can help their members meet tight bid requirements and get back to work amid the COVID-19 pandemic.
Understanding Cooperative Purchasing
In some cases, the standard proposal process is wasteful. The RFP process requires vendors to create a proposal that meets state-specific criteria, and once obtained, each proposal then goes through a vetting process…which can cost the requesting company both time and money.
With cooperative purchasing, however, there is often no need to advertise or compose a bid solicitation and no need to evaluate, receive and negotiate proposals. In these situations, cooperative contracts simplify criteria-based bidding and give businesses and organizations the chance to scale and negotiate. In the end, it helps buyers access better pricing and services!
Another great benefit is that the cooperative purchasing process is transparent. This openness ensures a competitive purchasing process and lets buyers know that they’re getting a fair deal. Group buying gives its members the power of numbers by soliciting contracts for the group, which, in turn, increases the purchasing power of participating entities.
A Real-World Example of Cooperative Procurement
Recently, an organization who was a member of a cooperative purchasing program needed to locate a trustworthy commercial roofing company for roof replacement. Because of their membership in a group purchasing organization (OMNIA Partners), they had access to roof replacement rates from TEMA Roofing, based on the buying power of the entire group.
(Typically, the cooperative purchasing organization leads the initial solicitation and then all members of the cooperative benefit from the resulting negotiation.)
This kind of joint effort enables groups to negotiate better pricing for contract services, because, while the price is lower (similar to the savings that are realized when buying in bulk from a member wholesale club), there is a larger pool of potential work for the roofing company. This process also helps members save time on the procurement process, because the majority of it is already completed before they need services.
Local government entities such as cities and counties, school districts and nonprofit organizations use co-op buying to access important services in addition to products and goods. Under normal circumstances, organizations are at the mercy of market rates. But, when buying as a group, small businesses and organizations have the leverage of a conglomerate.
Why Organizations Choose Cooperative Purchasing
A group purchasing organization is formed by two or more government agencies, public entities, small businesses or nonprofits. They purchase services together in a resulting contract, using the same contract terms throughout the group (which is what aids in lower prices, better contract terms and a faster procurement process).
A normal sealed bid process adds unnecessary work and delays to the job of sourcing services, as compared to utilizing a cooperative contract. And, when using this method, organizations typically accept the lowest bidder (which doesn’t often result in the highest quality service).
Cooperative purchasing, by comparison, enables organizations to meet competitive bidding and legal requirements and there’s often no fee to participate in the many cooperative purchasing programs throughout the United States. Service providers are vetted and are trusted within the organization.
Meeting Your Bid Requirements with Cooperative Contracts
Many organizations in today’s business landscape are facing shrinking or static budgets. But, at the same time, they must maintain competitive excellence. For this reason, decision-makers need every resource available to operate more efficiently.
For most organizations, goods and services represent their most significant expenses, so in this sense, cooperative procurement from group purchasing organizations (GPOs) can play a critical role in driving down costs. In short, cooperative purchasing helps procurement leaders overcome budgetary challenges.
Keep in mind that there are many buying groups across the country, so it’s important to do your research prior to joining (so that you know that the group meets the needs of your entire organization). By joining the right cooperative purchasing organization, you can secure the goods and services you need now—and in the future.
Group Purchasing Helps Post-COVID Operations
In addition to helping members find quality commercial services (like the commercial roofing services provided by TEMA Roofing), cooperative purchasing organizations are helping businesses get back to normal business operations in a post-pandemic business landscape.
Whether it’s remediation services, cleaning, additional technology or corporate-related services, many cooperative purchasing programs are stepping up to the plate and adding additional benefits to members in order to get business back up and running.
Your business or organization doesn’t need to have a .gov address to benefit from these services either. Programs like TIPS-USA and OMNIA Partners are adding resources from suppliers to support efforts nationwide.
So, whether your organization is searching for bid-worthy services or in need of resources to help your employees return to the office and re-open facilities, a cooperative purchasing program may be just what you need!
An Experienced Roofing Contractor for Your Next Cooperative Procurement
Now that you know more about meeting bid requirements and getting back to business-as-normal (post-COVID) with a cooperative purchasing contract, it’s time to see which group best fits your organization’s needs.
At TEMA Roofing, we have worked with group purchasing organizations for years, helping customers find the right type of roofing system within their own individual budgets. Many times, businesses don’t even realize that they’re able to utilize a GPO to obtain a commercial roof, and we are happy to help navigate the collaborative purchasing process.
TEMA Roofing Services has provided commercial roofing services for more than 50 years and takes great pride in all that we’ve learned during that time. With TEMA, you have access to competitive pricing through our partnerships with TIPS-USA and OMNIA Partners, and we look forward to connecting online for a free, no-obligation quote.