For years companies have outsourced their sourcing and procurement needs to reputable companies that are not only more experienced in the area but also have the established processes to be successful. There are many benefits to outsourcing to a company like SourceOne, including having a highly trained team with decades of experience in the subject, gaining the use of their economies of scale and market knowledge to gain higher profits, and the increased efficiency of the procurement processes. Sourcing and procurement are highly important areas of focus for a business today, requiring that many criteria are thought through and considered effectively to ensure overall savings and profitability for the business. It is therefore important to know a little more about why you should outsource this process.
What is sourcing and procurement outsourcing?
Sourcing and procurement outsourcing is the transferring of certain procurement needs to an outside body, usually an established and experienced sourcing company. This can include many areas including strategic sourcing and category management, in order to become more cost effective and increase profitability for the business. Procurement requires a huge amount of attention, focus and effort to make sure it is as cost effective as it can be, and failing in this area can mean a failing business. It can also be extremely cost-consuming to attempt to build your own procurement processes from the ground up when there are already successful processes established and ready to be utilized. From staff costs and training, to gaining the market expertise necessary as well as the amounts needed to strike an effective deal, there are many downsides to creating your own process. With so many aspects of business to focus on, why not outsource sourcing and procurement and make sure it is done efficiently and effectively, and by a team of experts with the required knowledge to get the best deal.
What are the benefits of sourcing and procurement outsourcing?
There are a great many benefits to sourcing and procurement outsourcing, including gaining access to a qualified team of professionals. By outsourcing it’s sourcing and procurement, your business gains the expert knowledge of a team of highly trained and experienced individuals who are focused on this exact area. This allows you to focus on the development of your business and feel more secure in the knowledge that the very best people are looking out for your sourcing and procurement needs. You can feel comfortable with the level of market knowledge available, for example which product is best purchased from what supplier. There is also the benefit of having an expert negotiator in the field who already has made similar contracts and can get the best deal, leaving you free to focus on the business itself.
The crucial factor in sourcing and procurement outsourcing is of course getting the best saving possible. By outsourcing, you reduce your staff and training costs to try and reach the level of experts in the market currently. Further, it is easier to get a better price using market leverage and economies of scale which is harder to do if you are creating your own process. With globalization, it is important to have contacts that can make the most of markets in all countries, aiding with low cost country sourcing and again helping to ensure you get the best prices. Sourcing and procurement outsourcing can lead to higher profits through greater expertise and efficiency, and is a great way to boost your business.
What are the potential pitfalls of sourcing and procurement outsourcing?
With sourcing and procurement outsourcing, as with anything in business, there are always risks and pitfalls to avoid. The key in this instance is to ensure you use a reputable and established company with plenty of experience in the relevant field. By outsourcing you are of course handing over a measure of control in terms of day-to-day purchasing and it is therefore essential that you can trust the company. A reliable company like SourceOne has decades of experience in sourcing and procurement, with a team of expert professionals who will not let you down. Sourcing and procurement are also collaborative areas, and it is important to work as a team and keep up communication and updated technology so that everyone is on the same page. Established and reputable companies like SourceOne have the expertise to efficiently and comfortably look after your sourcing and procurement needs.
Conclusion
Today, sourcing and procurement are essential parts of business, and by outsourcing to a reputable agency you can soon reduce costs, increase efficiency, and increase profitability. By using a team of highly qualified professionals to do the leg work you capitalize on their economies of scale and contract negotiation while also enabling the business to focus on its core capabilities. While it is crucial to use a trusted and established company to outsource your sourcing and procurement, you can then trust they have the contacts and market knowledge to find the best suppliers for the products you require in countries across Asia and places where you can find a better price. An efficient procurement process can make the difference between a profitable business and a failing one, so make sure you outsource your sourcing and procurement to the experts, and contact us today for more information.
