Why should you use a Procurement Service Provider?

December 22nd, 2015

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?

globalsourcing

 

 

 

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.

 

If you thought this page is useful to your friend, use this form to send.
Friend Email
Enter your message

9 Responses to “Why should you use a Procurement Service Provider?”

  1. I really love your blog.. Pleasant colors & theme. Did you make this site yourself? Please reply back as I’m wanting to create my very own website and would like to know where you got this from or exactly what the theme is called. Kudos!

  2. Ludie Beasly says:

    I must thank you for the efforts you have put in writing this site. I am hoping to check out the same high-grade blog posts by you later on as well. In fact, your creative writing abilities has motivated me to get my own blog now 😉

  3. Unlimited Professional USA Private Proxies – 100 Anonymity in addition to Most effective Rate – Purchase Proxies At this point for DreamProxies.com

  4. An added important component is that if you are a mature person, travel insurance intended for pensioners is something you should make sure you really take into consideration. The older you are, greater at risk you will be for permitting something awful happen to you while in another country. If you are not necessarily covered by a few comprehensive insurance plan, you could have many serious problems. Thanks for giving your guidelines on this blog.

  5. Juan Bigney says:

    Have you ever thought about adding a little bit more than just your articles? I mean, what you say is fundamental and all. However just imagine if you added some great graphics or video clips to give your posts more, “pop”! Your content is excellent but with images and clips, this site could definitely be one of the very best in its field. Amazing blog!

  6. Best Private Proxy Save – DreamProxies.com – Order Private Proxies not to mention Receive 50 OFF along with Free Proxies!

  7. Top dogs quality private proxies, Endless data transfer useage, 1000 mb/s superspeed, 99,9 uptime, Neo continuous IP’s, Basically no intake rules, Different subnets, USA or perhaps Western world proxies – Order At this point – DreamProxies.com

  8. Garth Marvel says:

    This is the right website for anybody who really wants to find out about this topic. You realize a whole lot its almost tough to argue with you (not that I really would want to…HaHa). You certainly put a brand new spin on a subject which has been written about for decades. Excellent stuff, just wonderful!

  9. Greetings! Very useful advice in this particular post! It is the little changes which will make the most significant changes. Many thanks for sharing!

Leave a Reply

You must be logged in to post a comment.