How E&I Cooperative Services Unlocked Efficiency Through Procurement Transformation

How E&I Cooperative Services Unlocked Efficiency Through Procurement Transformation

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  • For any organization, managing procurement on a grand scale is a delicate balance. For E&I, a 90-year-old U.S.-based group purchasing organization (GPO) catering to thousands of educational institutions, this balance became increasingly challenging as it grew.

    Serving a diverse member base from small K-12 schools to sprawling universities, E&I needed to transform its procurement processes to stay competitive. It was critical to enhance both the volume and the quality of sourcing operations by improving efficiency and effectiveness.

    Taking a holistic approach to category management and sourcing planning would enable faster speed to market, higher-quality contracts, stronger member relationships, and more structured supplier collaboration.

    “We knew we would face significant challenges in streamlining procurement processes in the coming years,” says Andrew Brennan, E&I’s senior vice president of sourcing. “Designing a model that could keep pace with the fast-evolving demands of the education sector was no small task.”

    The stakes couldn’t have been higher. Procurement formed the essence of E&I’s business model with direct consequences for its financial health.

    E&I envisioned an entirely new operating model that would streamline processes, strengthen internal capabilities, and lay the foundation for sustained growth.

    Fundamental Change

    Carrying out this transformation required specialized expertise in procurement and supply chain. E&I found a partner with a collaborative, hands-on approach, delivering tailor-made solutions for the company. “GEP stepped in with expertise, dedication, and a commitment to our success that was truly remarkable,” Brennan says.

    Workshops and deep-dive consultations revealed E&I’s pain points: disjointed teams, underused data, and inefficient processes. E&I needed to upgrade its operating model, which had led to its procurement and sales teams working in silos, made its RFP timelines too long, and neglected valuable supplier relationships.

    With its partner, the organization fundamentally reimagined its procurement strategy with a customized, streamlined procurement model.

    “E&I would not benefit from a one-size-fits-all approach, given each of its contracts had to meet the unique, complex requirements of all its diverse member groups,” says Raina Saxena, senior director, consulting, GEP, who is working with E&I on the transformation journey.

    The result was a more cohesive, member-centric approach that placed the needs of E&I’s vast and diverse membership at its core. With data analytics and segmentation, E&I’s procurement needs were prioritized more effectively. It could now swiftly address complex requests that once took months to contract, and it redefined supplier relationships through more proactive engagement.

    Transformation in Action

    The change wasn’t just operational; it was cultural. GEP worked side by side with E&I’s teams, ensuring the transformation would stick. Onsite training, role-playing scenarios, and open forums were part of an intensive effort to upskill E&I’s procurement professionals.

    “We led category strategy development, strategic sourcing, and contract negotiations, complementing them with more frequent and effective supplier pre-sell discussions,” Saxena says.

    With thousands of educational institutions as members, E&I faced a staggering variety of procurement requests. Meeting these needs required precision, speed, and a deep understanding of each member’s unique requirements.

    The new model was more than an operational improvement—it helped E&I ensure every member, whether a small school or a major university, received more responsive and customized procurement solutions.

    High-Impact Results

    As the team honed its procurement capabilities, the results were transformative. E&I dramatically reduced its RFP timelines; its supplier engagement hit new highs; and it significantly shortened supplier response times and sourcing cycles while sharply increasing the volume of completed projects. “Our team’s efficiency has nearly quadrupled since partnering with GEP,” Brennan says.

    The numbers told a compelling story. “Together, we doubled E&I’s revenue projections, accelerated sourcing velocity and throughput, and delivered competitive contracts with up to 20% cost savings,” Saxena says.

    E&I awarded nearly half of the contracts to diverse suppliers, a significant achievement in today’s procurement landscape. The transformation allowed E&I to increase its administrative fees to suppliers as its heightened value proposition became more evident.

    Perhaps most importantly, E&I’s procurement function had become a strategic engine for growth. The transformation had unlocked new opportunities and paved the way for sustainable success, helping E&I meet the increasingly complex needs of its members and elevate its procurement processes to best-in-class levels.

    Key results of E&I’s procurement transformation:

     • 2X revenue growth forecast due to enhanced procurement strategies and pipeline expansion

     • 4X increase in project completion

     • 50% reduction in supplier response time

     • Sourcing cycle cut by over half, from 10- to 12-month cycles to three to five months

     • 15% to 20% lower pricing on contracts

     • 80% conversion rate in pre-sell phase, a huge jump from the previous 10% to 15% success rate

     • 40% contracts awarded to diverse suppliers, a major shift towards inclusivity and diversity in procurement

     • 50% increase in supplier administrative fees, a key growth driver for E&I

    A Model for the Future

    E&I’s journey with GEP illustrates the power of collaboration and the potential of procurement as a transformative business function. In an industry where the pressure to adapt is relentless, the ability to transform swiftly and effectively is essential. E&I’s story is about more than improving processes and boosting revenue—it’s about embracing change to position itself for long-term success.

    By revamping its procurement strategy and operations, E&I has laid the groundwork for a more resilient, responsive, and innovative approach to serving the education sector. And in today’s world, where change is the only constant, that kind of foresight might just be the most valuable asset of all.


    Talk to GEP to drive growth by transforming your procurement operations.

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