| Procurement outsourcing is best suitable for medium to | | | | core issues like marketing, branding, launching of new |
| large companies who procure direct and indirect goods | | | | products, sales promotion and so on. |
| and services in large quantities as well as values. If | | | | It does not mean laying-off your department and |
| your company is falling into this category of large | | | | off-shore all purchasing requirement. It simply means |
| procurement, you need to think about outsourcing your | | | | only outsourcing strategic procurement that will help |
| major procurement requirements now to have | | | | improve organization their overall core-competencies. |
| competitive advantage over your competitors. | | | | Procurement outsourcing allows companies to |
| Let me explain you what the "procurement | | | | ultimately improve their core-competency abilities and |
| outsourcing" truly means. It is the procurement activities | | | | leverage major non-core activities that lead to overall |
| that you outsource to third party to do partial or full | | | | improvement in procurement performance without |
| procurement of specified categories on your | | | | making any investment in the infrastructure. |
| company's behalf. This outsourcing could be in any sort | | | | If your company's procurement is huge and runs into |
| of procurement you are looking for. Large companies | | | | hundreds of categories, it is a time to think seriously for |
| usually outsource their procurement in key strategic | | | | outsourcing. You must be ready to transform your |
| sourcing for effective supplier management. | | | | internal procurement to outsource and committed to |
| Small or medium-sized companies do outsource their | | | | gain benefits of outsourcing in the longer time. Without |
| non-core procurement direct and indirect materials. | | | | this level of understanding, procurement outsourcing will |
| These are costing them significantly as well as eating | | | | not be a wiser decision. |
| into their time that do not allow them to focus on other | | | | |