Benefits of Full or Augmented Outsourcing Models
What are the benefits of outsourcing procurement? Whether looking to supplement your current procurement or implement a fully outsourced solution, here are the top benefits.
Five Major Benefits of Utilizing Outsourcing Procurement
Specialized Knowledge and Expertise
Even the largest internal teams can’t have expertise in all areas of procurement. Using an outsourced team grants you access to dozens of specialized individuals available when needed.
- How can CCM help? CCM has experts in over 40 expense categories. For example, CCM has an industry expert with 30 years of experience in records management and shredding. Such “surgical” expertise can only be brought to the table by specialists that can use this expertise across dozens of clients.
Time-saving
An outsourced procurement engagement will expedite savings and the supplier management process. External professionals will have out-of-the-box solutions with experienced professionals and established vendor relationships ready to make an immediate impact. The organization can save time and focus on other core activities by having a dedicated procurement team.
- How can CCM help? CCM is often referred to as an “accelerator” by its clients. Projects that may typically take 6-9 months to accomplish can be completed within 100 days by leveraging the expertise of the CCM. A deep understanding of vendor and product specifics and category-nuanced best practices, allowing us to streamline processes and actuate opportunities for cost optimization.
Better Negotiations
Negotiations are a critical part of the procurement process. Getting the best possible deal while maintaining a good relationship with the supplier is essential. One of the vital aspects of these negotiations is using proper market pricing knowledge.
- How can CCM help? CCM has the experience to provide the requisite skills to successfully engage suppliers to achieve the most favorable terms for your organization. It stays abreast of industry trends, market dynamics, and emerging products and services that are leveraged during negotiations. To be successful, CCM works with internal stakeholders to understand needs and requirements, combining this internal knowledge with CCM’s broad experience across multiple industries.
Greater Transparency
A dedicated external procurement team follows a standardized procurement process that ensures greater transparency in the flow of information and management of suppliers. Internal teams are often more tactical, shifting from renewal to renewal.
- How can CCM help? CCM builds tracking and auditing of its performance into its processes to measure progress and improve service. Internal teams are often more tactical, shifting from renewal to renewal, and often don’t have consistent technologies or approaches to report on the procurement function’s ROI.
Scalability and Overhead Reduction
Another benefit of an outsourced procurement team is the ability to ramp up or down depending on the client’s needs. This flexibility allows clients to maximize the return on their investment.
- How can CCM help? CCM’s procurement team has internal employees with experience in specific expense categories that can work across many clients, creating an efficiency our client’s internal teams cannot achieve. We can quickly allocate skilled professionals to effectively accommodate changing needs in different areas, ensuring optimal results without burdening the client’s internal resources.
How can these benefits help your business?
Stay tuned for our upcoming blog posts as we dive into the Factors to Consider When Deciding Between Building an Internal Team or Outsourcing. Our informative blog series will explore key factors such as core competency, expertise, cost considerations, timing, flexibility, and organizational culture. Join us as we provide valuable insights and guidance to help you make an informed decision that aligns with your organization’s unique needs and goals.
