One element of a successful business operation is the company’s ability to implement efficient processes like procurement. Procurement refers to the process of acquiring goods or services and is a typical activity in a product-driven business. Without a proper procurement process, major issues and challenges may arise in the company’s day-to-day operations.
It may be a good idea to consider outsourcing your procurement services to avoid difficulties that come with managing procurement in-house. In this article, you will learn the best reasons to start looking at outsourcing companies to provide you with tailored procurement solutions for your business.
6 Reasons You Should Outsource Your Procurement Services
For companies that have been in the business for quite some time, procurement can be fairly simple. However, for growing businesses, the process may pose some challenges. In such a scenario, working with an outsourcing partner can help address the problem.
Here are six reasons outsourcing procurement services may be a good idea.
Improved ability to meet customer demands
Customer satisfaction is key to achieving business success. Part of this involves ensuring that supply chains operate optimally.
When you outsource procurement services, your expert partners can reduce the chances of an inefficient supply chain that could damage customer relationships. Outsourcing companies have the technology needed and processes in place to ensure effective strategies for procurement. In turn, the supply chain flow runs smoothly and efficiently.
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Outsourcing procurement services can help increase organisational productivity since third-party service providers streamline the process. According to a survey, 24% of small businesses outsource to improve efficiency.
By letting experts handle the procurement process, you will have more time to look after functions directly related to your business. Consequently, your in-house employees can concentrate on completing their tasks and improving their work.
Reduced operational costs
From training and equipment to government-mandated benefits and a regular salary, the expenses of keeping an in-house procurement team can be quite high. With outsourcing, these costs are reduced by roughly 70% with greater efficiency and high-quality results.
Greater access to local and international databases
Hiring an outsourcing company to handle your procurement services is an excellent business strategy because it gives you access to local and international databases, including a wide range of suppliers.
According to a survey, 46% of companies agree that outsourcing allows them to work with industry experts. Your outsourced team’s network of contacts can be your ticket to meeting suppliers that can give the best deals for your business.
Streamlined business processes
Having a dedicated team to handle your procurement process will help streamline your business operations. While your outsourced procurement team works on acquiring supplies, your in-house staff can focus on their tasks without delays or hiccups. As a result, your company can get more work done, ultimately boosting your revenue.
A third-party supply chain partner can help you gain better control of the different factors that go into the procurement process, including quality, lead times, and inventory levels, among others. Yet, despite handling multiple responsibilities, outsourcing companies regard security as a priority.
As such, mitigating risks is part of their process to ensure continuous operations on their end. Furthermore, they have the expertise in managing business risks and regulatory issues. By working with an outsourcing service provider, you can secure backup suppliers, prepare for audits, and optimise safety stock.
Outsource Your Procurement Services Today
Outsourced procurement services can greatly benefit your business in terms of productivity and efficiency. This translates to satisfied and happy customers and, ultimately, increased sales.
optiBPO is an outsourcing company in the Philippines that offers a wide range of outsourcing solutions, including procurement services. We can help you build and manage a dedicated team that serves as an extension of your organisation. Contact us today to learn more about our offerings!