| Objective: The two main objectives of procurement | | | | production process. This activity needs extreme |
| outsourcing is reduction in cost and tightening of focus | | | | management of time and record of inventory. Since |
| on core competencies. | | | | the material purchased is entering production process |
| Activities: There are some basic procurement activities | | | | directly, then there should be no time gap between |
| that include sourcing and supplier management to a | | | | supplying and processing. Moreover inventory |
| third party. These activities involve extra effort and | | | | management should be at optimum. Most production |
| time for any business groups. Therefore, it is best to | | | | Companies involve management of ingredients and |
| outsource them from relevant outsourcing call centers. | | | | packaging as direct procurement activities. |
| Benefits: Procurement Outsourcing activity allows | | | | Indirect Procurement: Market research, IT related |
| Company to benefit from experience, expertise and | | | | services, HR, facility management, securities, after |
| support offered by procurement specialist. | | | | sales services, and other related activities are included |
| Procurement outsourcing avoids creation of internal | | | | in Indirect Procurement. |
| team and time involved to structure itself, its process, | | | | Market research includes media buying, advertising, |
| and expertise. | | | | customer response, and other such activities. IT as the |
| It is best for Companies who are completely unaware | | | | name suggests is related to software and hardware |
| about internal competencies of outsourcing and want | | | | involved in main line of business. Some Companies |
| to benefit, as soon as possible. Some Companies | | | | outsource recruitment and training agencies to upgrade |
| have internal competencies; still they want to gain by | | | | their professional staff for efficient working. It is not |
| outsourcing in certain specific areas like indirect | | | | essential that Company has to have office services |
| materials and services. Companies start some | | | | managed by them. Electricity, water, telecom, catering, |
| mid-term activities that need to have immediate action, | | | | furniture and other such related activities take up lot of |
| then it is best to outsource such activities for instant | | | | time, leading to involvement in unnecessary work. It is |
| savings and efficient performance. | | | | best to opt for procurement outsourcing from relevant |
| Categories: Procurement Outsourcing is categorized | | | | Outsourcing Contact Centers. |
| into two broad classifications | | | | There are specialized Procurement Outsourcing |
| Direct Procurement: Direct procurement, as the name | | | | Centers that are dedicated to their work, and have |
| suggests is related to goods purchased by vendors | | | | strong expertise in both such activities. |
| and suppliers and making them enter directly into | | | | |