How Does Higher Education Procurement Work?

If your business has been trying to make its mark in the higher education market, understanding how procurement works can be a game-changer. That’s why we’re diving into the purchasing landscape of universities and colleges today—arming you with key insights and best practices to boost your outreach and marketing efforts. Read on and learn everything you need to elevate your marketing strategy and stand out in the specialized higher education field.

Understanding the Higher Education Procurement Landscape

Procurement in higher education essentially refers to securing goods and services that keep academic and operational gears turning, ultimately driving student success. These processes are key for the smooth and efficient functioning of institutions, emphasizing the 3Ps of procurement:

• People: The skilled professionals who manage procurement, making sure the right resources are acquired efficiently.
• Process: The structured procedures and workflows that govern purchasing activities from start to finish.
• Paper: The essential documentation that tracks and validates every step of the procurement process.

With the National Center for Education Statistics reporting that post-secondary institutions in the United States spend  $702 billion a year, you have to imagine a hefty percentage goes toward procuring goods and services—from new technology and office supplies to food services and much more. But, what specific procurement activities are unique to the higher education sector? Some of the most common types include:

• Tendering: Inviting competitive bids or proposals for major purchases or projects.
• Sourcing: Identifying and selecting suppliers who meet an institution’s specific needs.
• Invoicing: Handling and processing invoices for received goods and services.
• Contract management: Negotiating, monitoring, and enforcing supplier agreements.
• Catalog management: Maintaining a dynamic database of approved suppliers and their offerings.
• Purchasing: Acquiring essential goods and services to support daily operations and academic goals.

Keep in mind that certain key players in the sector have more purchasing power than others. These professionals are the ones shaping procurement decisions that affect both academic excellence and operational efficiency. To elevate your outreach and sales strategies, focus on engaging with these decision-makers. Some of the school leaders you might target include:

• Procurement officers
• Administrators
• Faculty members
• Governing board members
• Department heads
• Financial officers
• IT directors
• Deans
• Vice presidents

Examples of Procurement in Colleges and Universities

Understanding what’s involved in higher education purchasing is one thing, but seeing it in action is another. Here are a few examples of how different types of procurement play out at colleges and universities:

1. Tendering of Campus Construction Projects

Colleges often invite competitive bids for large construction projects, like new buildings or major renovations. That way, educational institutions get the best value while staying within budget constraints and quality standards. Such projects aim to enhance the campus environment for students and staff alike.

2. Sourcing Educational Technology Solutions

Universities seek out advanced technology solutions to boost the teaching and learning experiences they offer. This includes everything from interactive classroom tools to comprehensive learning management systems, requiring careful selection of vendors who can meet the institution’s specific technological needs; not to mention future-proof their educational infrastructure.

3. Purchasing Laboratory Equipment

Because science departments use specialized equipment for research and teaching, procurement practices involve evaluating different suppliers to find high-quality, reliable laboratory instruments. With solutions that meet the rigorous standards of academic research, schools ensure that students and faculty have access to the best tools available.

4. Contract Management for Campus Services

Managing contracts for services such as dining, maintenance, and security is essential for smooth campus operations. Throughout the process, schools engage in negotiating terms, monitoring performance, and ensuring compliance with service agreements. These efforts help maintain a safe and student-friendly campus environment.

The Steps for Education Solution Providers To Enter the Market

With the scenarios above in mind, you might be wondering where education solution providers fit in. Businesses in this sector support schools by offering solutions tailored to their unique needs. Understanding the procurement process is crucial for knowing how, where, and when to reach the right educational decision-makers. If your business aims to do the same, here are the steps to get started as a new vendor in higher education:

1. Establish your business as a legal entity: Ensure your business is properly registered and authorized to operate in the relevant states. This is crucial for compliance and legitimacy.
2. Register with relevant state boards and agencies: Identify and register with the appropriate state boards and agencies that oversee education procurement. That way, you increase your visibility and credibility within the sector.
3. Obtain necessary certifications: Acquire certifications to demonstrate your business meets industry standards. These validations can be essential to qualify for certain procurement opportunities.
4. Register on procurement platforms: Sign up on educational procurement platforms commonly used by schools. These platforms are where many colleges and universities reach out about their procurement needs.
5. Build relationships with decision-makers:  Cultivate lasting relationships with key decision-makers and procurement professionals in the education sector. Strong connections promote long-term success and more opportunities for your business.

What Challenges Do Businesses Face in Higher Education Procurement?

Establishing your business as a vendor in the higher education space is just the beginning. Now it’s time to focus on marketing and outreach to connect with a school’s procurement team. However, you may encounter a few key challenges in the process:

• Budget constraints and purchasing cycles: The National Education Association reveals that higher education is grappling with  rising operational costs and reduced state funding—made worse by  the end of CARES federal funding. These limited budgets and unique school purchasing cycles necessitate careful planning and negotiation to secure contracts.
• Complex decision-making hierarchies: Navigating multiple layers of administrative approval processes can prolong spending timelines.
• Varying needs and high competition: Understanding and addressing the diverse requirements and preferences of institutions is essential for successful engagement. Plus, the crowded marketplace within higher education requires tailored offerings to effectively stand out among competitors.
• Compliance and regulatory requirements: Adhering to stringent compliance standards and navigating complex regulatory landscapes adds another layer of challenge to securing procurement agreements in the education sector.

5 Best Practices for More Effective Outreach in Higher Education

While outreach may seem daunting at first, there are several strategies your team can implement to enhance your engagement efforts with post-secondary educational institutions—at the right time in their  purchasing cycles:

1. Leverage Education Data

Make use of  education data and analytics from trusted providers like Agile Education Marketing to understand the specific needs and procurement activities of relevant institutions. Gathering insights into purchasing behaviors, budget cycles, and strategic priorities helps you not only navigate complex decision-making hierarchies but also tailor your outreach strategy more effectively.

2. Customize Your Solutions and Proposals

Because of the competitive nature of the sector, avoid a one-size-fits-all approach in your solutions and engagement initiatives. Instead, customize your offerings, proposals, and marketing efforts to align with the unique requirements of each institution. Demonstrating a clear understanding of their needs increases the likelihood of gaining traction and trust.

3. Demonstrate Value From the Start

Showcase the real-world impact of your solutions through compelling case studies and testimonials. Highlighting successful implementations and measurable ROI is essential to reassure decision-makers of the benefits of partnering with your company—especially considering  shrinking school budgets. You might also offer pilot programs or free trials, allowing institutions to experience your solutions firsthand and further building confidence in your team.

4. Cultivate Beneficial Partnerships

Focus on building and nurturing long-term relationships with key decision-makers and procurement officers within higher education institutions. To strengthen these partnerships, you might:

• Invest in personalized communication
• Establish regular follow-ups or check-ins
• Offer proactive support to foster trust and loyalty over time
• Provide exclusive insights or previews of upcoming solutions

5. Establish Thought Leadership

Positioning your company as a thought leader is particularly valuable in the higher education sector. Why? Because providing valuable educational content not only attracts attention but also establishes your credibility and expertise within the community. This might involve sharing insights and industry trends through content marketing, webinars, conferences, and social media.

Enhance Engagement and Procurement Success With Education Data

Succeeding in higher education procurement demands a deep understanding of institutional needs and decision-making processes.  Agile Education Marketing stands out as a trusted ally, equipping your team with essential  education data, insights, and  valuable services to navigate this landscape. That way, you can refine your marketing strategies and effectively engage with higher education institutions. This proactive approach enhances your visibility and credibility and helps you build lasting relationships in the sector.

Ready to boost your educational marketing strategy? Learn more about  navigating the higher education procurement landscape, or explore our  higher education data licenses to get started.

About the Author:

Ali Newcomb

Ali, VP of Marketing at Agile Education Marketing, is a strategy development specialist with over 20 years of experience in the education market. Prior to joining Agile, she held leadership roles at Pearson, McGraw-Hill, and InsideTrack and earned her Master of Business Administration from the University of Colorado.