Procurement outsourcing is rapidly gaining traction as a strategic solution for businesses of all sizes.
Today’s competitive business environment has changed from promotional strategies, marketing channels, and pricing methods, to how organisations adjust their strategies to compete effectively using procurement outsourcing as a strategic tool for Chief Procurement Officers (CPOs), business owners, and finance directors to alleviate pressure, optimise costs, and empower their organisations to thrive.
This blog delves into the benefits, considerations, and steps involved in leveraging procurement outsourcing to ease pressure in-house. Whether you’re feeling the strain of managing a demanding procurement process or seeking to enhance efficiency and effectiveness, this guide will equip you with the knowledge to make informed decisions for your organisation.
Is your business feeling the weight of a demanding procurement process?
You’re not alone. Supply chain issues, one global political crisis after another, rising interest rates, global inflation, and employing the right talent and skillset meant 90% of businesses raised their prices by 10% or more last year.
Whether you’re a procurement department head, a business owner, or a finance director, the pressure to optimise costs, ensure efficiency, and manage supplier relationships can be immense.
In 2024, procurement outsourcing is emerging as a strategic solution to alleviate these pressures and empower your organisation to thrive.
What is Procurement Outsourcing?
Procurement outsourcing involves partnering with a third-party provider such as DMT Solutions to manage specific aspects of your sourcing and supplier management functions.
Allowing your internal team to focus on core competencies, while the outsourced partner leverages its expertise and resources to deliver the following benefits:
- Reduced Costs: Procurement service providers often benefit from economies of scale, allowing them to negotiate better rates of up to 75% with suppliers and potentially reduce their overall procurement spend. Additionally, you can save on overhead costs associated with hiring, training, and managing an in-house procurement team.
- Enhanced Expertise: Access a team of seasoned procurement professionals. With more than 20 years of specialised knowledge in strategic sourcing, negotiation, and supply chain management. Our expertise can help you make informed purchasing decisions, optimise contracts, and identify cost-saving opportunities.
- Improved Efficiency: Procurement service providers utilise best practices and cutting-edge technology to streamline the procurement process. Our services are designed to significantly reduce administrative burdens and free up your team’s time to focus on strategic initiatives.
- Strengthened Supplier Relationships: Leverage our established supplier network and relationship management expertise to secure better deals and ensure reliable, high-quality products and services.
- Increased Agility: As your business needs evolve, a flexible outsourcing arrangement allows you to scale your procurement resources up or down as required, ensuring you remain adaptable and responsive to market changes.
Is Procurement Outsourcing Right for You?
While procurement outsourcing offers numerous benefits, it’s crucial to assess your organisation’s specific needs and circumstances carefully. Consider the following factors:
- The complexity of your procurement needs: If you deal with a high volume of diverse purchases, outsourcing can be particularly beneficial.
- Size and capabilities of your in-house team: If your team lacks the expertise or resources to handle your procurement workload effectively, outsourcing can be a valuable solution.
- Strategic goals of your organisation: If your focus is on cost savings, efficiency, or supplier management improvement, outsourcing can support these goals.
We cover 15 core business activities including:
- Business Energy
- Payment Terminals
- Courier and Shipping
- Corporate Social Responsibility
- R&D Tax Credits
- Business Rates
- All Procurement Outsourcing Solutions
Taking the Next Step
If you’re considering procurement outsourcing, we must conduct thorough research on your business costs. Our proven track record, industry expertise, and a clear understanding of your requirements will benchmark your current costs and tender for the best value in pricing, service levels and value for money.
By carefully evaluating your needs and exploring the potential benefits, procurement outsourcing can be a powerful tool for easing pressure, optimising costs, and driving growth within your organisation.
How our process works
Our streamlined process is designed to make life easy.
Simply provide 3 months of existing contracts or your requirements and we’ll handle the rest.