Choosing the right supplier may be one of the hardest decisions a procurement department has to make and 31% of procurers stated this as the hardest part of their job.
The right supplier means that your products and services are delivered on time, that you are receiving the optimal price to meet your needs and that the quality is in compliance with your standards.
Procurement outsourcing is on the rise mostly due to its large cost saving potential (Central Trading Agency, Inc or CTA, Inc. provides to its clients up to 30% savings on their procurement expenses), but also due to ability to provide first class procurement service to companies. Most companies are unable to manage a large number of suppliers, especially when it comes to non-core spending, or don’t have the sufficient time or money to invest in their procurement department staff.
The long time elephant in the room of every big business – a tail-end spend management is finally becoming a procurement priority. Usually, procurement organizations have been focused on managing their strategic spend and that means 80% of total spend. The tail-end of a procurement department’s spend refers to the 20% of non core transactions that are left unmanaged, usually due to a high volume of suppliers and limited in-house resources.
I have been a small procurement owner for years now and I’ve seen it all in this business. However, I still learn every day and I believe I will never stop because I always strive to be better at what I do. One thing that never seizes to amaze me is the importance and capabilities of small companies.
If the time has come for your company to outsource its Procurement process, how do you go about choosing a good outsourcing partner? You should look for a company that offers a broad range of quality materials and products, timely deliveries and quick lead times, and that can help you reduce costs.
Speed should be the focus and the forte of a good Procurement process. Why? Because timing is everything, especially for Procurement in Manufacturing. Timely deliveries of raw materials and other goods have an immediate impact on reducing companies’ costs and increasing their revenue. Here is how
Procurement outsourcing market was estimated to be worth approximately $2.2 billion in 2015, with an estimated growth of 12% in 2016. This illustrates how more and more companies are jumping on the outsourcing bandwagon. Read on to find out how to choose the right outsourcing partner.
Manufacturing companies are looking at ways to optimize their bottom line by, among other strategies, cutting costs and optimizing operations. If manufacturers look at where their greatest investments are made, it becomes obvious that an optimized Procurement process can be of benefit to their bottom line. Why?
E-procurement systems have made great strides in automating and streamlining the procurement process and have become increasingly popular in corporate America.
We took a closer look to see what advantages outsourcing some procurement activities to a procurement service provider might have over these systems.
All industry executives know that they must optimize their Procurement operations in order to reduce internal costs, increase profits and safeguard their production from external risks. What is the way forward for Procurement optimization in Aerospace? In this article we explain the challenges and outline some best practices.
Today’s increasingly competitive market is forcing companies to improve operations or face diminishing market share. As internal optimization can be very expensive and complicated and requires time that most companies don’t have, Procurement outsourcing has become an essential strategy for companies to remain competitive.