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