Importance of Procurement in an Organization
There may come a time when your business needs to scale, and it needs to happen fast. This is a fantastic moment for any business owner – but what if your business structures aren’t quite ready to take the step? For many modern business owners, outsourcing solves this problem quickly and expertly. Enlisting the services of 3rd parties to lend experience to critical facets of your business enables you to look into areas that you may not have the ability to address in-house.
Procurement in particular has seen a rise in outsourced solutions in recent years, addressing procurement processes and supplier sourcing, and can even lower prices by aggregating demand from multiple clients. But why does your organization need procurement processes? Is procurement outsourcing the right solution for you? As an expert in finding procurement outsourcing solutions, we have everything you need to know right here.
What is Procurement?
Procurement is the set of related processes involved in sourcing and obtaining goods or services for a business. From identifying and vetting possible vendors, to negotiating contracts and making final purchases, procurement is a vital part of any business. The objective of any procurement process is to build a slick and efficient procurement pipeline, save costs and time, and build strong and reciprocal relationships with suppliers. As a critical part of a business’s supply chain, any management of the chain must include a full procurement process plan. This plan will run from the very start of the procurement process – which is usually the determining needs phase – right up until the invoicing and record keeping stage.
What are the Advantages of Having a Procurement Process?
A procurement process – and specifically, an automated one – can benefit your business across the board. The reduction of workload while also avoiding paperwork-based errors can free up substantial time for your workforce, and for all stakeholders on both sides of the transaction. Automatic record-keeping will ensure that all aspects of the process remain transparent, accurate, and consistent.
If, however, your business doesn’t have the capacity to implement a full procurement process, part of this can be outsourced to a third party. As mentioned above, one of the immediate benefits of this is in pricing, as third-party solutions can aggregate demand to secure lower prices, resulting in reduced costs for your company. In the same breath, the reduced cost for each client results in great exposure to expertise that they may not be able to afford on their own. SCP is an expert in identifying and recommending third-party procurement solutions for your business, and can implement the services seamlessly into your supply chain.
Importance of Procurement Outsourcing in an Organization
The importance of your business being able to expand as necessary cannot be overstated. However, it is also true that circumstances can get in the way of achieving this effectively while using in-house solutions. Outsourcing procurement can alleviate those concerns, and turn that weakness into a position of strength by providing access to seasoned professionals with proven methods.
The development of procurement outsourcing and procurement systems over the last decade also means that there is no need for a one-size-fits-all approach. SCP’s experience in sourcing procurement solutions and building procurement systems means that there will be an implementable solution for you in any form that your business requires. From low-level operations – such as infrastructure replacement of people, systems, and supplier management – to the total replacement of your procurement process, we can enable your business to leverage economies of scale and reach new heights.