{"id":5419,"date":"2014-11-20T13:32:24","date_gmt":"2014-11-20T13:32:24","guid":{"rendered":"http:\/\/www.whichwarehouse.com\/blog\/?p=5419"},"modified":"2018-03-01T13:45:48","modified_gmt":"2018-03-01T13:45:48","slug":"procurement-outsourcing-benefit-business","status":"publish","type":"post","link":"https:\/\/www.whichwarehouse.com\/blog\/news\/procurement-outsourcing-benefit-business\/","title":{"rendered":"Procurement outsourcing  &#038; how it can benefit your business"},"content":{"rendered":"<h2 style=\"text-align: justify;\"><span style=\"color: #ff6600; font-family: arial, helvetica, sans-serif;\"><strong>Procurement outsourcing &#8211; is it worth considering?<\/strong><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"color: #000000; font-family: arial, helvetica, sans-serif;\"><strong>Procurement outsourcing<\/strong><strong> \u2013 <\/strong>Your company may be looking to<a style=\"color: #000000;\" href=\"http:\/\/www.whichwarehouse.com\/\"><img loading=\"lazy\" class=\"alignright size-medium wp-image-5420\" src=\"http:\/\/www.whichwarehouse.com\/blog\/wp-content\/uploads\/2014\/11\/Procurement-300x218.jpg\" alt=\"procurement for business\" width=\"300\" height=\"218\" srcset=\"https:\/\/www.whichwarehouse.com\/blog\/wp-content\/uploads\/2014\/11\/Procurement-300x218.jpg 300w, https:\/\/www.whichwarehouse.com\/blog\/wp-content\/uploads\/2014\/11\/Procurement.jpg 480w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/a> reduce its overheads or perhaps now is the time that you want to give more attention to the core aptitudes of your business.\u00a0 This is known as \u201cprocurement outsourcing\u201d.\u00a0 By recruiting the help of a procurement team this permits organisations to focus on other aspects of their commerce and thus benefiting from skilled &amp; knowledgeable specialists.\u00a0 Outsourcing to such a group of individuals averts the necessity of you having to generate a resource team in-house therefore saving you vital funds long term.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000; font-family: arial, helvetica, sans-serif;\">This service offers an invaluable solution for businesses who 1) want to explore the possibilities of cost reduction, new suppliers and contract managements; 2) has little or no experience in specific area(s) and wants to engage with persons who have expert awareness of the specified area, or 3) who simply do not want to employ or establish a team in-house for this function.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000; font-family: arial, helvetica, sans-serif;\">Procurement outsourcing is becoming increasingly more recognised worldwide by global industries who use the expertise of procurement companies to cater for requirements ranging from the delivery of marketing material through to <a style=\"color: #000000;\" href=\"http:\/\/www.whichwarehouse.com\/blog\/news\/outsourcing-logistics-services-warehouse-space\/\">sourcing reputable supply chain partners for the storage &amp; distribution of goods<\/a>.\u00a0 There are two main divisions of procurement and these are <strong>direct procurement <\/strong>and <strong>indirect procurement<\/strong>.<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li><span style=\"color: #000000; font-family: arial, helvetica, sans-serif;\">Direct procurement refers to items bought by the business which immediately enter into their production process. Using the fashion industry as an example, materials would be a significant direct procurement category.<\/span><\/li>\n<li><span style=\"color: #000000; font-family: arial, helvetica, sans-serif;\">Indirect procurement refers to goods and services that are sourced by a company to enable its every day function. Utilities such as gas &amp; water, marketing related services and IT services for applicable hardware &amp; software.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"color: #000000; font-family: arial, helvetica, sans-serif;\">Having decided to take the route of <a style=\"color: #000000;\" href=\"http:\/\/en.wikipedia.org\/wiki\/Procurement_outsourcing\">outsourcing your procurement necessities<\/a> you should primarily evaluate how your business is performing in current times.\u00a0 Establish your company\u2019s accomplishments over recent months and investigate exactly how outsourcing will profit your organisation.\u00a0 There are many Procurement Services Providers (PSP) out there and it is vital you build a relationship with the company\/individual that best fits you and your business.\u00a0 Do your research, don\u2019t feel obliged to sign agreements with the first PSP you meet with.\u00a0 Outsourcing procurement is a huge deal to the future of your corporation and therefore you must feel confident in the PSP you employ.\u00a0 Don\u2019t be shy to ask for evidence of their previous experience and case studies of their work.\u00a0 Enquire as to the longevity of their relationships with other companies that have utilised their services.\u00a0 You are looking for a PSP that has built up several years of providing comprehensive spend management services to a wide range and number of companies.\u00a0 Request confirmation of their success record together with having sight of a solid balance sheet and growth plans.\u00a0 An established highly skilled PSP will not have an issue presenting you with this information nor be offended at the request.<\/span><\/p>\n<h2 style=\"text-align: justify;\"><span style=\"color: #ff6600; font-family: arial, helvetica, sans-serif;\"><strong>How can outsourcing procurement benefit your business?<\/strong><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"color: #000000; font-family: arial, helvetica, sans-serif;\">Aside from the obvious benefit of cost reductions within your <a style=\"color: #000000;\" href=\"http:\/\/www.whichwarehouse.com\/blog\/wp-content\/uploads\/2014\/11\/benefits-of-outsourcing-procurement.jpg\"><img loading=\"lazy\" class=\"wp-image-5421 size-medium alignright\" src=\"http:\/\/www.whichwarehouse.com\/blog\/wp-content\/uploads\/2014\/11\/benefits-of-outsourcing-procurement-300x124.jpg\" alt=\"outsource procurement for your business needs\" width=\"300\" height=\"124\" srcset=\"https:\/\/www.whichwarehouse.com\/blog\/wp-content\/uploads\/2014\/11\/benefits-of-outsourcing-procurement-300x124.jpg 300w, https:\/\/www.whichwarehouse.com\/blog\/wp-content\/uploads\/2014\/11\/benefits-of-outsourcing-procurement.jpg 631w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/a>organisation, outsourcing procurement can also assist with the improvement of your existing systems and procedures.\u00a0 Engaging with a PSP also gives you contact with extremely skilful procurement professionals who can aid you with services that your current internal departments perhaps cannot.\u00a0 These skilled professionals will have access to an extensive network that would be solely beneficial to your company.\u00a0 These individuals are more often than not proved to be completely worthy of their role and show complete focus and determination of achieving the desired KPI (key performance indicator).<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000; font-family: arial, helvetica, sans-serif;\">As with almost everything, there is the chance that employing a PSP could also have a downside.\u00a0 In the case of procurement outsourcing this can be the worry that your business will lose the control it currently maintains from having an in-house resource.\u00a0 Although having said that, this one negative often proves to be far outweighed by the positives and therefore many business owners ruminate that the loss of control in-house is a sacrifice worth making.\u00a0 Especially considering the benefits that a PSP can bring to the table including continuous fresh concepts to reflect the most contemporary procurement developments.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000; font-family: arial, helvetica, sans-serif;\">Another form of outsourcing that many businesses express an interest in, is the supply chain logistics for their goods.\u00a0 Whether you are looking for a company to deal with the entire A to B of your products or simply just require some additional warehousing space, <a style=\"color: #000000;\" href=\"http:\/\/www.whichwarehouse.com\/pages\/Find%20Space\/\">Whichwarehouse<\/a> has an established network of third party logistic providers who all have the expertise and experience to deal with all your supply chain needs.\u00a0 Services covered can range from handling the distribution of your products to the end users or the complete handling of all documentation required for the import and\/or export of your goods, to the receipt, reworking, labelling, storage and other value added services.\u00a0 Each 3PL provider can offer as little or as much assistance as you require of them.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000; font-family: arial, helvetica, sans-serif;\">If you are considering looking at the options of a 3PL provider to see how it can reduce your overheads, and indeed, assist with possible improvements of the flow of your products from manufacturer to consumer, <a style=\"color: #000000;\" href=\"http:\/\/www.whichwarehouse.com\/contact-us.html\">contact us<\/a> today on 0800 1707 555 and we will be pleased to listen to your concerns and expected requirements before carrying out a (no charge) search of our extensive network of members to find the best solution for you.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000; font-family: arial, helvetica, sans-serif;\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Procurement outsourcing &#8211; is it worth considering? Procurement outsourcing \u2013 Your company may be looking to reduce its overheads or perhaps now is&#8230;&nbsp;<span class=\"cmtcnt\">0<\/span><\/p>\n","protected":false},"author":136,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_wp_rev_ctl_limit":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.whichwarehouse.com\/blog\/wp-json\/wp\/v2\/posts\/5419"}],"collection":[{"href":"https:\/\/www.whichwarehouse.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.whichwarehouse.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.whichwarehouse.com\/blog\/wp-json\/wp\/v2\/users\/136"}],"replies":[{"embeddable":true,"href":"https:\/\/www.whichwarehouse.com\/blog\/wp-json\/wp\/v2\/comments?post=5419"}],"version-history":[{"count":0,"href":"https:\/\/www.whichwarehouse.com\/blog\/wp-json\/wp\/v2\/posts\/5419\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.whichwarehouse.com\/blog\/wp-json\/wp\/v2\/media?parent=5419"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.whichwarehouse.com\/blog\/wp-json\/wp\/v2\/categories?post=5419"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.whichwarehouse.com\/blog\/wp-json\/wp\/v2\/tags?post=5419"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}