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Procurement Service Provider

Procurement Service Provider – Identify, Realize and Increase Savings

In the current financial environment, product sourcing services are being used extensively by large, medium and small-sized companies. The procurement service provider marketplace has witnessed several changes as well. Business process outsourcing has reduced barriers within companies to move towards outsourcing all or even crucial parts of the procurement function. Companies spend a considerable part of their budget to procure goods and services from other countries. When you consider options to rationalize internal overheads and find efficient and effective procurement market intelligence, service providers are the best bet. The need to globalize spend is a necessity for most companies across the world. The management of procurement function has also turned into a scale-driven game. The emergence of strategic sourcing and credible procurement service providers has led to attractive value propositions as well.

Product Sourcing Services – Redefining Sourcing to an Indispensable Tool

The purchasing area is difficult to manage in most organizations and often warrants the usage of multiple service and contract types. While traditional services would mean that a large part of savings potential is unused, you can transform the way in which you approach product sourcing to realize financial returns. There are a number of global players who are focused on the outsourcing of the end-to-end management (from sourcing to procure-to-pay) of the indirect spend. A number of technology players are focused on outsourcing the procure-to-pay process across the direct and indirect total spend as well. Niche players provide focused services. For instance, smaller geographic players cater to SME’s, players who provide market intelligence capabilities to support procurement function increase effectiveness and then there are specialized companies that provide low cost country sourcing services.

Procurement Service Provider – Change Agents to Drive Lasting Improvements

By choosing to outsource the management of their LCC sourcing initiative, companies can successfully take advantage of spend consolidation and aggregation, enable greater visibility and control over the entire LCC sourcing process and benefit from the service provider’s global network of offices. Although a number of companies are aware that procurement can help them generate savings, what they need is a service provider who will initiate, accelerate and also help complete the process for REAL RESULTS.

Better service delivered at lower total costs – this is exactly what product sourcing services will provide. There is no one-size-fits all approach, which is why it is extremely important to determine the strategy which will work for your organization. A combination of supply-chain professionals and a global delivery network to aid supplier management in low cost countries awaits you with a reliable LCC-focused procurement service provider.

Market Intelligence Reports – The Data You Need 

You can find below an example of LCC sourcing country report providing insight into countries relative political and economic  positions

 

 Emerging countries’s political and economic relative position

Most services boast of state-of-the-art online purchasing solutions, provide expert and strategic knowledge and operational excellence as well. Choosing an effective service translates to a smart business decision to drive profitable growth for your company in a challenging business environment. To begin with, you need to identify the advantages and risks of outsourcing some or all of your procurement processes and/or categories. To ensure that the assessment is objective, you need to hire a qualified third-party provider. Following that, you can choose to selectively outsource to the best providers with a track record in the relevant categories and industry.

If you are a company looking to benefit from procurement effectiveness, you need to develop a good understanding of the capabilities these service providers are capable of providing. This will help you focus your internal procurement core skills on what is strategic. Further, you can partner with external scaled advantaged service providers in order to complement skills that can not be competitively built internally. These companies will combine excellent people and technology in order to work with you to develop multiple, harmonized cost-saving procurement strategies. They will also execute the strategies so your organization can avail the full advantage year after year.

Convert savings potential into “reality” with a procurement service provider today.