The decision to outsource your business procurement is not an easy one. But, if you are unsure about the benefits of outsourcing, this article should give you four reasons why it might be a good idea.
First off, there is relief in knowing that someone else has all the responsibility for sourcing and selecting suppliers. They will negotiate on price and quality so that your company can focus on what it does best: running its core business.
Improve quality of services
Quality assurance is also an area where outsourcing your procurement helps with greater efficiency and effectiveness ̶ both of which lead to improved quality of services provided by the purchasing department.
Save time and money
An experienced procurement team is good at negotiating prices, saving you up to 20% of your company’s working capital. They are also well-connected with suppliers and know all the best bargains before anyone else does! This means that they will get you better deals for products or services than what an in-house procurement team can.
Outsourcing the procurement functions allows businesses to free up resources that can be used on other productive tasks such as product development, marketing, or customer acquisition. It also means directing more of your investment towards the business’s bottom line rather than spending unnecessary time and money doing things in-house that you could hire a third party to do for you.
Compliance and regulatory requirements
In some industries, specific compliance or regulatory requirements must be met before a purchase can be made. Outsourcing your procurement will ensure that every supplier complies with ethical standards set by your company – which means increased trustworthiness among stakeholders, customers, and employees alike.
Expertise in procurement is a valuable commodity. When it comes to procurement, experience is vital. By outsourcing your business procurement, you can tap into an experienced procurement specialist’s wealth of knowledge. This can save you time and money as they will know where to find the best deals and how to get the most value for your money. For example, a specialist in comparator sourcing can help you find the best comparator drugs for your clinical trial supplies.
Better access to suppliers
Experts in procurement have access to more than just local suppliers, leading to faster order fulfillment times at reduced costs because of lower shipping rates. By outsourcing your business procurement, you can access a wealth of resources that would be otherwise inaccessible to you and tap into the best deals from around the world – which is good for both speed and cost-effectiveness when it comes to getting products or services for your business.
Fewer disruptions in supply chain
Outsourcing your business procurement can be a lifesaver when getting products delivered on time for the right price. When you manage every aspect of the supply chain yourself, any issue can significantly disrupt your operations and disrupt your customers. For instance, if there is an unforeseen glitch in shipping or at the production facility, your business would also be affected. That is why outsourcing your procurement can help reduce this risk and give you more peace of mind throughout the year.
Outsourcing your business procurement can help you save time and money. By working with a procurement specialist, you can streamline finding and purchasing goods and services for your business.