OUTSOURCING IN THE WORLD OF PROCUREMENT

In the world of Outsourcing, the various classes of projects that can be outsourced are numerous. The company holds the discretion as to the projects to outsource, and the projects to keep in-house. Companies outsource Procurement as a service, to third party in a bid to take that load off them, and save cost.

Projects like Procurement could be a sensitive aspect in most organizations. The concerns of handling procurement, whether in-house or outsourced, usually border around cutting costs/ unnecessary expenditure on the company’s needs, as they are more about finding out ways of investing on things that will yield direct income to the organization.

It is important that you are able to ascertain whether or not you are hitting your organization’s targets with you Procurement Outsourcing partnership. We notice that many companies do not have this testimony, and more often than not, run at a loss or are just not achieving their expectations or goals by outsourcing their procurement.

Don’t only think “save money”; also think – can I reinvest the monies saved as a result of outsourcing my procurement needs?

In the apprehensions of the risks of engaging procurement firms to handle your procurement needs, keep in mind that no business is without risks. Sudden unforeseen matters can creep up on the smoothest sails, and sometimes, the Innovations of the crew are just what they need to stay afloat. Outsourcing firms are usually that crew that work through unforeseen challenges with their expertise and methods “outside the book”, to make sure they deliver to in record time, and meeting the expectations of their clients.

Because procurements outsourcing entail some multi-reliance and optioning, there can be a whole lot of damage control when it comes to the relationships between the distributors or sellers and the clients who happen to be the procurement outsourcing firms, and if not – the company directly in need of the items. In such cases of dealing directly with suppliers, companies are faced with monotonous delivery, or sometimes disappointments that could lead to a major strain in the seller and buyer relationship. Time taken in searching for new (equally or more reliable) options may cause a stalling, and in some cases, a major setback in company operations. That is where the role of a procurement outsourcing firm comes in handy, where the setbacks one or two suppliers would have caused a company, are prevented.

The fears of diversion of clients’ patronage should not be a challenge where this is properly managed by the organization.

Outsourcing firms are usually your “invisible partners” that work underground in making the whole wheel turn.

Daven Michaels is a New York Times Best Selling Author and CEO of premiere global outsourcing company, 123Employee. The company employs hundreds of young bright individuals on three continents. His International event, Beyond Marketing Live! inspires entrepreneurs to build & grow their business with revolutionary new theories and systems allowing them to design the business and personal lifestyle of their dreams.

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Tim McCoy

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Roy Meyers

I’ve been working with 123 for a couple of years now, and I can tell you they have made all the difference in the success of my business and the reason my business has grown and continuesto generate more and more income. Now one of the things that’s been great is it’s freed me up from having to do all the tasks that I simply just don’t have time to do. It allowed me just to focus on the IGAs or income generating activities in my business.

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