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What is a Third Party Procurement Company? The quick answer? We are our client’s right-hand man in procurement.
When speaking to suppliers, on a daily basis, we are asked who are you, why are you working on behalf of so and so, and what does third party mean?
The name third party procurement company has a couple of other names that mean the same thing, but are just as confusing, PSP or Procurement Service Provider.
According to Procurement Service Provider:
A Procurement Service Provider, or PSP, is a third party organization or consultant which is used to supplement internal procurement departments. PSP’s have their own staffing which assist in a variety of tasks for their clients. These tasks include: strategic planning, implementing best practices, supplier rationalization, and supplier collaboration, strategic sourcing and negotiation.
“Enterprises utilizing PSP’s have been able to improve spending coverage, reduce costs for goods and services, employ industry best practices, leverage the latest procurement technologies, and streamline source-to-pay processes – all without taking on the risks and assets required to achieve such results.” Aberdeen Group Research Abstract: You Will Outsource Procurement: Here’s Why and How – October 16, 2002.
SafeSourcing can assist you in exploring your procurement solutions for your business or on our “Risk Free” trial program, 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.