Navigating the future of education procurement

Education procurement is evolving rapidly. Schools and universities are facing tighter budgets, shifting policies, and increasing demands, all while striving to support students and staff effectively. Procurement teams are at the epicenter of these challenges, tasked with finding innovative ways to do more with less.

To succeed in this dynamic environment, education procurement professionals must adopt strategies that prioritize efficiency, collaboration, and innovation. Here are five key approaches to navigating the future of education procurement:

1. Strategic resource management

Time and resources are limited, making strategic resource management essential for success.

Procurement teams can move beyond transactional purchasing by adopting proactive approaches like financial forecasting, capital planning, and strategic sourcing. Collaborating with suppliers to invest in products and services that deliver long-term value is critical. This shift allows schools and universities to focus on their core mission: providing quality education. Operational excellence also plays a key role. By streamlining processes and identifying opportunities for improvement, procurement teams can reallocate resources to areas that directly impact student outcomes.

"It’s just not buying a widget. It’s really about investing in products and services that’s going to provide value back to the education team," says Jim Rowan, CEO of ASBO International.

2. Aligning procurement with institutional goals

Procurement is more than just purchasing. It’s a strategic function that supports broader institutional goals. For many schools and universities, sustainability and student outcomes are top priorities. Procurement teams can align their strategies with these goals by embedding them into purchasing decisions. For example, prioritizing certified sustainable suppliers and products, or investing in tools that enhance student learning can create meaningful impact.

It’s also essential for procurement professionals to have a seat at the table when institutional goals are set. Whether you’re part of a large team or a one-person operation, understanding the mission and aligning your work with it ensures that procurement contributes to the institution’s success.

3. Leveraging AI to help drive innovation

Artificial intelligence is transforming procurement, offering new opportunities to improve efficiency and decision-making. AI procurement software can help alleviate time-consuming tasks such as drafting RFPs, analyzing data, and managing supplier relationships. This allows procurement teams to focus on strategic initiatives that drive student value. However, successful adoption requires practical training and a clear understanding of how to use AI tools effectively.

"We’re seeing institutions leaning into new techniques, new strategies, and certainly new technologies. AI is going to be pretty impactful," says Brad Prabha, CEO of the National Association of Educational Procurement (NAEP).

To get started, procurement professionals can explore AI-based solutions that address their specific needs. Working with suppliers who are experienced in AI implementation can also provide valuable guidance and support.

4. Retaining and developing talent

Attracting and retaining top talent is a challenge across the education sector, but it’s essential for building a strong procurement team. Compensation in education procurement may not always match private sector levels, but other factors such as mission-driven work, professional development opportunities, and a collaborative culture can make a significant difference.

Encouraging curiosity, creativity, and engagement within your team fosters a strategic mindset that goes beyond compliance. Providing opportunities for employees to take on leadership roles, participate in professional organizations, and develop new skills can also boost retention and morale.

5. The power of collaborating

Collaboration is a cornerstone of effective procurement in education. Schools and universities can achieve greater efficiency by working together through cooperative purchasing agreements, shared RFPs, and collaborative partnerships. For example, districts can pool resources to negotiate better rates on energy, insurance, or technology. Suppliers also play a key role in collaboration. By building strong relationships with trusted partners, procurement teams can access innovative solutions and expert support to address their unique challenges.

"Something that’s really cool about higher education procurement, which is different from private sector procurement, is that we’re not competing with each other. We actually share resources amongst universities and sibling institutions," says Brad Prabha.

Looking ahead

In conclusion, education procurement is about more than managing budgets. It’s about solving challenges creatively, supporting students and staff, and driving meaningful outcomes. By focusing on strategic resource management, aligning with institutional goals, leveraging AI, retaining talent, and fostering collaboration, procurement teams can navigate the complexities of today’s education landscape and build a stronger future.

At Amazon Business, we’re committed to empowering education procurement professionals with the tools and resources they need to succeed. From innovative purchasing solutions to guidance, we’re here to help you achieve your mission.