What Is Procurement Outsourcing? - Web Design Forum Graphic Design Site Templates Flash CSS Discussions

marshall00 · #1 09-03-2010, 07:30 AM

hello
Procurement outsourcing is a general term used to describe a situation where a business or organization purchases procurement services from an outside company. Outsourcing has been around as a business model for a very long time, but it gained notoriety in the mid-1990s as large companies began reducing well-paying positions in favor of outsourcing administrative functions to companies located in other countries. The primary goal of outsourcing is to improve efficiency and reduce administrative overhead costs.
Thanks

kalish · #2 09-04-2010, 01:47 PM

HI
Procurement outsourcing is the transfer of specified key procurement activities relating to sourcing and supplier management to a third party — perhaps to reduce overall costs or maybe to tighten the company's focus on its core competencies. Procurement categorisation and vendor management of indirect materials and services are typically the most popular outsourced activity.

Outsourced procurement teams allow companies to benefit immediately from experienced procurement specialists support & expertise. This avoids the creation of an internal team (new resources) and the required time for that team to structure itself, its processes and its expertise.

Outsourced procurement is therefore an available solution for companies who : - Have no internal competencies but want to quickly benefits from procurment action (Cost reduction, suppliers and contract management...) - Have internal procurement expertise (department) but want to outsource activity on specific area(s) like indirect materials and services. - Consider Procurement as not a non strategic / core function and want to have it managed by a procurement service provider - Want to develop quickly a procurement function to deliver savings, with a willingness to internally develop this function in the mid term

Thanks

peterjones10 · #3 08-17-2011, 08:02 AM

Procurement outsourcing is the transfer of specified key procurement activities relating to sourcing and supplier management to a third party — perhaps to reduce overall costs or maybe to tighten the company's focus on its core competencies. Procurement categorisation and vendor management of indirect materials and services are typically the most popular outsourced activity.

greekjames · #4 08-18-2011, 05:39 AM

Procurement outsourcing is the transfer of specified key procurement activities relating to sourcing and supplier management to a third party — perhaps to reduce overall costs or maybe to tighten the company's focus on its core competencies. Procurement categorisation and vendor management of indirect materials and services are typically the most popular outsourced activity.