Why outsourcing part or all of your procurement function in the following situations:

  • Procurement is not a core competency you are interested in building internally.
  • You are operating in a regulated industry and would rather let a professional handle any risk attached to procurement and supplier management.
  • You do not wish to make new hires but recognize the cost of managing your supply chain optimally.
  • You want to increase your buying power by aggregating spend with other SMEs for group purchasing benefits

The potential benefits of outsourcing procurement :

  • Innovation, new ideas, and processes
  • Easier introduction to new suppliers
  • Ability to utilize specialized knowledge and skills to improve purchasing performance
  • Aggregation of quantities resulting in greater buying power
  • Flexibility to cope with peaks and troughs in workload, incurring recruitment costs and overheads
  • Access to technology and tools
  • Allow internal resources to be more focused on key areas/targets