Procurement BPO

Procurement Outsourcing

Are you finding that it’s difficult to keep up with your purchasing process in-house?

Business process outsourcing (BPO) gives you the advantage.  Many companies compare the outsourcing of their procurement processes to outsourcing of legal and IT.

Corporate leadership has a new standard for procurement: revenue and value creation. Organizations should be exploring new methods for improving their processes.  BPO of procurement processes provides greater flexibility and cost-cutting benefits.

What is Business Process Outsourcing?

Business process outsourcing is different from normal procurement outsourcing. Outsourcing is a means to get resources and perform functions. These solutions lined up with internal business processes.

Now, organizations can outsource entire processes, and pass these responsibilities to a third party.

  • Contract Negotiation

  • Competitive Benchmarking

  • Procurement Process Improvement

  • Cost Reduction

  • Creative Execution

How Can BPO Help My Business?

Business process outsourcing provides a strategy to help meet long-term goals and objectives. You can implement agile processes that help departments on an ongoing basis, and use experts who support those processes adapt them to market changes without your involvement.

Some businesses outsource their entire procurement process.  Third-party procurement experts help absorb risk and deliver best-in-class solutions.

Increase efficiencies and decrease the time to market for solutions to your business challenges.

10 Reasons Your Company Should Invest in BPO

1. You Want to Reduce Costs

Maintaining an organization dedicated to purchasing and procurement is expensive.

Many companies use procurement BPO to save money, and develop custom strategies for their organization.

  • Increase spend under management

  • Increased savings opportunities

  • Support with unfamiliar spend categories

2. You Know You’re Not Finding the Best Resources

A centralized procurement function can span the entire enterprise. Developing needed expertise in certain departments is a challenge, and teams use BPO to improve their procurement processes.

Sourcing requires a lot of experience, research, and analysis.

How can procurement BPO improve your process?

Here are some long-term advantages:

  • Leveraging the market for better discounts

  • Lower costs by economies of scale

  • Trained specialists in any given field

  • Better information from people who understand the purchasing environment

This contributes to business value, and helps to transform your procurement organization from a cost-center to a profit center.

3. You Don’t Have the In-House Means to Deliver on Key Objectives

Build vs. Buy.

Businesses may not want to build out a procurement organization.  It is expensive and time consuming. Other areas of the business might not be able to provide the right resources or experience.

Using BPO allows you to hire specialized third parties as needed and implement  value based solutions. .

4. Your Teams Can’t Focus on Their Core Initiatives

A great word to describe the purpose of BPO is “enablement.” Third-party experts enable your teams to add business value.

When your teams spend time and resources on sourcing, they aren’t adding business value. Spending time on ancillary processes takes away from core proficiencies.

5. You Have Evolving Needs for One or More of Your Teams

Market disruptions change the needs of the organization. Some departments struggle more than others.

Leaders have to adapt to internal expectations. These expectations change almost overnight.

Teams can use BPO to partner with agile procurement specialists. These teams can choose and launch solutions right away. Agile organizations use BPO to outsource day-to-day activities to allow them to focus on more value creating activities.

6. You Want Sourcing to Be a Strategic Part of Growth Initiatives

Growth should be a key business goal for all departments – but it’s not.

Companies need flexible solutions. BPO allows a business to remain nimble and transform the purchasing process into one that contributes to the bottom-line.

Third party procurement experts are flexible resources. They can adapt to business needs and find the best solutions – quickly.

7. You Want Support Managing Changes within Your Organization

Successful BPO depends on third-party support for change management. Business process outsourcing can have a wide-ranging effects on an organization. The third party’s ability to manage those effects will determine its success.

The combined efforts of you and your partner should focus on preparing employees for change. There should be a number of focus areas, including:

  • Specialized training

  • Knowledge management

  • Cultural assessments

  • Formal employee support

8. You Want a Partner That Provides Deep Market Insights

Procurement third parties offer more than process solutions.

BPO for research and analysis allows your teams to use market insights to meet the objectives of the business itself.

Your external procurement team can tailor reports for delivery to key stakeholders. This helps foster collaboration between departments and leadership. That means better alignment with core business goals.

Your BPO partner can give you more access to supplier data. You can identify sourcing opportunities and scale out resources.

9. You Want to Get Stakeholder Support for Your Initiatives

Getting everyone on the same page can be difficult. Use BPO to help gain the support of stakeholders.

Use procurement outsourcing to implement projects to gain quick-wins for multiple business units, and encourage collaboration throughout the enterprise.

10. You Want to Align Procurement with the Entire Organization

Soon, procurement teams will have all new functions in the organization. Market conditions will force them to take on new capabilities. They will be a central asset to all internal teams.

Departments need  support for all types of initiatives. Procurement BPO can become an essential part of the business itself. .

Consider how your organization is positioned for the future.


Contact Info

1708 Camino de la Costa Redondo Beach, CA 90277

Phone: (310) 870- 3746

Web: Gordon Horner LLC

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