Organizations managing student housing know that indirect procurement costs can add up faster than a frat house’s beer tab. Luckily, there’s a smart and easy way to slash costs while maintaining the quality of campus life.
Indirect goods and services such as foodservice, cleaning supplies, linens, maintenance, repair and operations (MRO), furniture and fixtures, small parcel shipping, and office supplies, represent a significant yet often overlooked opportunity for savings. While these costs may seem minor compared to major renovations, they can accumulate quickly across multiple properties. Ensuring a reliable supply of these essentials is vital for maintaining student satisfaction and operational efficiency.
Group Purchasing Organizations (GPOs) like Una offer a powerful way to address these challenges. By leveraging collective buying power, GPOs can help student housing providers achieve savings ranging from 20% to as high as 49% across various indirect categories. With access to thousands of pre-negotiated supplier contracts, institutions can streamline procurement processes and enhance reliability.
Top Indirect Categories for Cost Savings in Student Housing
Here are the top categories where GPOs can help student housing providers control costs:
- Foodservice: Dining costs can escalate quickly, but cutting quality is not the answer. GPOs connect institutions to reputable national food distributors, typically achieving savings of up to 15-20%.
- Cleaning Supplies: Unless you’re dealing with the cast of National Lampoon’s Animal House, maintaining cleanliness in student and campus housing is a top priority. GPOs secure lower prices through collective buying, ensuring a steady supply of essential cleaning products and/or services.
- Linens: Costs associated with bed linens and towels can add up. GPOs help institutions negotiate contracts for linen laundry and purchase that reduce these expenses while ensuring quality.
- Maintenance, Repair, and Operations (MRO): Supplies for upkeep can be a significant expense. GPOs provide access to competitive pricing on a wide range of MRO services.
- Furniture and Fixtures: Furnishing student accommodations can be costly. GPOs leverage volume purchasing to secure substantial discounts on quality furniture and fixtures.
- Small Parcel Shipping: GPO partnerships enable institutions to access discounted shipping rates with top providers.
- Office Supplies and Printing: Everyday office needs contribute to operational costs. GPOs offer bulk purchasing options that lead to dramatic savings in this area.
Campus Cost Savings in Action
A notable success story comes from Campus Cooks, a national food service provider dedicated to serving fraternities and sororities across the United States. By partnering with Una, Campus Cooks has been able to save its members up to 15% on food costs through a food cost reduction program.
Background
Campus Cooks, headquartered in Wheeling, IL, has been supporting Greek life since 1995, providing on-site chefs and tailored meal services to over 150 Greek chapters in 26 states. Recently, they faced challenges in securing favorable pricing and reliable service from national distributors.
The Partnership with Una
Michael Scagnoli, the Procurement Manager for Campus Cooks, recognized the need for a partner to help stabilize food costs amid fluctuating prices. By joining Una, Campus Cooks gained access to expanded contracts with national food distributors, which allowed them to secure discounted pricing while maintaining relationships with local vendors.
Results
As a result of this partnership, Campus Cooks has seen significant improvements:
- Up to 15% savings on food costs
- Streamlined procurement processes
- Enhanced customer service experiences
Scagnoli noted, “The process of partnering [with Una] has been pretty seamless. We bring an account to them, they help push through the account setup, and off we go to savings.”
This collaboration not only alleviated the procurement burden but also allowed Campus Cooks to focus on their mission of supporting Greek chapters by providing high-quality food and service.
Ready to Get Started?
Join now or schedule a no-obligation discovery call to discover how group purchasing can help when managing student housing or campus facilities. Membership is free, with no purchasing requirements or exclusivities.
