Procurement outsourcing is the transfer of specific key procurement activities, processes, functions, or department to a third party. The reasons are many — from a lack of skills, bandwidth or to tighten the organisation’s focus on its core competencies.
Procurement outsourcing can be at the functional level, specific processes, goods and/or services, and focus on direct or indirect procurement.
Outsourced procurement teams allow companies to benefit immediately from experienced procurement specialists support & expertise. This avoids the creation of an internal team (new resources) and the required time for that team to structure itself, its processes and its expertise.
Outsourced procurement is therefore an available solution for organisations that:
- Have no or limited internal competencies but want to quickly benefit from procurement action such as cost reduction, suppliers and contract management;
- Have an internal procurement expertise (department) but want to outsource activity on specific area(s) like indirect materials and services;
- Want to develop quickly a procurement function to deliver savings, and act as a transition period in order develop this function in the mid term.
It is also a candidate for organisations that consider Procurement as a non strategic / core function and want to have it managed by a procurement service provider.
BvW Global can assist your organisation by creating a business case for Procurement Outsourcing or be the outsourced provider for a specific function or for your entire department.
Please contact us for further information.