Sourcing and Procurement
The benefits of outsourcing sourcing and procurement services
Sourcing and procurement functions are critical aspects of product-based businesses. Organisations need to partner with reliable suppliers for the raw materials and parts required to keep operations running smoothly and on schedule. The responsibility of locating and establishing working relationships with suitable vendors and suppliers falls to the procurement department. While a single purchasing professional may be able to handle the sourcing demands of a smaller business, organisations will need to take on more procurement staff as they grow. Hiring and training new employees to expand an in-house procurement team can be an expensive and time-consuming endeavour, which is why more and more businesses are now opting to outsource sourcing and procurement activities.
Tying up with third-party procurement service providers gives organisations the opportunity to work with highly qualified and experienced procurement specialists with the skills necessary to craft ideal procurement strategies and manage supplier relationships. With the experts taking care of procurement processes, in-house teams can focus on core business activities and grow the organisation. Let’s take a closer look at the many advantages and benefits of outsourcing the procurement function.
Maintaining a proficient in-house procurement team involves training staff, acquiring equipment, and paying salaries. All this can end up being quite expensive.
Businesses can save a great deal of money by opting to outsource their sourcing and procurement functions to a third-party procurement services provider. In addition to the reduced internal operational costs, businesses that partner with established procurement experts can also expect to boost the overall efficiency of their sourcing and procurement processes.
Access to a wide supplier network
One of the chief benefits of outsourcing procurement processes is access to an extensive network of vendors and suppliers through the procurement service provider. Organisations can take advantage of comprehensive local and global databases of prospective suppliers across various industries through expert third-party procurement teams to build robust and sustainable procurement strategies.
A procurement strategy that is agile and able to adapt to changing conditions, such as those witnessed during the pandemic, can greatly reduce supply chain risks. Working with competent third-party procurement experts enables businesses to build resilient procurement strategies and source materials from numerous suppliers when faced with shortages. This flexibility can prevent supply chain disruptions in the face of adverse situations.
Relying on a third party for sourcing activities such as locating appropriate suppliers, comparing costs, negotiating prices, and establishing relationships allow in-house employees to focus on various other procurement initiatives. A procurement services provider will use their network and expertise to streamline sourcing and purchasing processes. This, in turn, boosts employee efficiency and gives in-house teams the ability to focus on more critical matters.
Mitigate procurement risks
Relying on a procurement business process outsourcing solution can give business owners better control over various aspects of the sourcing and procurement process, such as supply chain management, the establishment of lead times, and the administration of inventory. Outsourcing service providers can guide negotiations with backup vendors, prepare businesses for audits, and accurately maintain safety stock. Qualified third-party procurement professionals have the expertise necessary to help organisations manage regulatory issues and reduce or eliminate procurement risks, which in turn ensures uninterrupted operations.
With a third-party services provider managing procurement activities, employees needn’t worry about sourcing and purchasing. Instead, they can focus on their core duties and work towards streamlining operations. The flexibility and expertise that procurement business process outsourcing solutions bring to the table enable the streamlining of the entire procurement process. Experienced and specialised procurement professionals are better-equipped to smoothen the sourcing and procurement workflow than in-house procurement teams, resulting in faster turn-around times and boosted productivity.
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How can Infosys BPM help?
Infosys BPM Sourcing and Procurement outsourcing Services incorporate cutting-edge technologies like artificial intelligence (AI), robotics-led automation, and advanced analytics to identify and deliver value to existing procurement processes. Reach out to discover how your organisation can enjoy all the benefits of outsourcing procurement, sourcing, and purchasing functions.