Most companies almost certainly use outsourcing solutions, whether it’s IT, facilities management or even manufacturing services. But have you ever considered outsourcing procurement? As procurement consultants we constantly manage the sourcing and supply management for our clients.
Fundamentally, outsourcing is a strategic decision driven by the return on investment the company expect from their assets. Companies had limited financial resources at hand. Hence, they have to focus on investment that strengthen their competitive edge, by investing in an outside company of procurement consultants to manage perhaps, one-off projects, or to enhance their own status can be beneficial. A team of consultants can bring to the table skilful teams, procurement information systems and supply market knowledge. They also highly engaged and motivated people, who see things from a different perspective from the company.
Companies may consider outsourcing to:
- reduce costs
- get better value
- return on assisting procurement assets
- decrease cycle times
- gain superior visibility
- control of spend
- reduce fixed cost base
In addition procurement consultants can obtain better value for money from suppliers through and more robust process of evaluation and development of supplier performance. The need to concentrate on core business is a common motivation to outsource to outside procurement consultants. This is a way to maximise return on existing assets.
The most beneficial asset that a procurement consultant can bring to the table is advice, which is totally confidential and unbiased. Our consultant’s expert external experiences can be contracting in an ad hoc basis, giving the company a resource that can be expanded and diluted as and when required. When consultants are hired in they are fully aware that time is money to the company, and therefore generally produce results faster than internal sources. Their skills leave no questions unanswered, and they have a strong eye on the critical path of the project or research they have been asked to carry out. There’s usually a strong mix of operations and strategy along with a good understanding of best practice within the industry. Being a procurement consultant they will come up with ideas and innovative ways of examining the organisation, this is possibly because sometimes a company cannot see outside of the box and bringing in support from outside can provide a quick fix to a stagnating company. Their insights can strengthen the organisation, support your structure now when the future.
On the financial side hiring a procurement consultant will be more cost-effective as there are no pension funds, PAYE, company cars etc. Etc. That would be normally being associated with an employee. Usually paid by the day the benefit from the organisation is that the contract with the consultant can be terminated within usually two weeks.
Finally they will use customer satisfaction is our own benchmark to whether or not they have provided high-quality service.