Can you spend hours of time devoted to researching qualified and certified suppliers?
Today’s post is written by Heather Powell, Director of the Customer Focus Team & Project Manager at SafeSourcing Inc.
Can you spend hours of time devoted to researching qualified and certified suppliers? Can you devote time to learning about the product and services your company need to buy? How do you know the product is apples to apples? Are the services providers licensed and bonded? How about obtaining multiple bids for your product?
From the website Procurement Service Providers:
At most organizations, it is very expensive and difficult to maintain domain expertise in every category of spend. Using a PSP avoids the burdens of procurement infrastructure for non-strategic categories. A Procurement Service Provider can provide a rapid analysis of an organization’s spend and implement changes, negotiate with suppliers, and use proven industry best practices. A good PSP will become an extension of the organization’s existing procurement resources, in a non-obtrusive fashion.
In a recent article titled “Strategic Sourcing in the Mid-Market Benchmark: The Echo Boom in Supply Management”, the Aberdeen Research Group wrote about potential new approaches of Mid-Market company’s sourcing initiatives due to findings showing that they currently have mostly fragmented or limited sourcing efforts. Specifically, to remain competitive, Mid-Market companies should have “Increased reliance on third-party consultants to help define strategic sourcing process and train internal employees on commodity costing models, sourcing automation tactics, and category and supply market assessments.”
Additional research shows:
“…research of enterprises that have outsourced management of specific procurement processes and/or specific categories of spending have been able to achieve material cost reductions that average between 10% and 25%. In some cases, material cost reductions topped 30%.” Aberdeen Group Research Abstract: You Will Outsource Procurement: Here’s Why and How – October 16, 2002
What SafeSourcing, Inc. states:
SafeSourcing works with finance and procurement department professionals in order to analyze their entire companies spend data to detect opportunities for cost reduction, supply chain awareness and performance improvement, as well as product and service quality improvement. Our ROI is historically greater than 10X and measureable within a company’s current fiscal accounting period.
Want to try us out risk free? Please contact a SafeSourcing Customer Service Representative. We have an entire customer services team waiting to assist you today.
We look forward to your comments.