An example of outsourced procurement in practise
A valuable client of ours is a UK based food manufacturer who have a strong procurement team overseeing the purchase of raw materials and packaging. The management of in-direct procurement is outsourced to Pare.
One recent project we completed saved them £48k per annum on their PPE and janitorial spend (a saving of 18%). That’s £48k to their bottom line! As part of the process, the supply base was reduced from 8 to 2 and the product range was completely streamlined and standardised, thus making the ongoing buying process easier to manage.
What are the other benefits of outsourcing?
- No costly recruitment fees
- No ongoing costs of employment
- No direct employment headaches
- Additional/short term resource to solve immediate problems
- Flexible contracts
- Focus – complete dedication to projects requiring a quick turn around
- Expertise
- Specialists, not generalists
- Removed from internal politics
- Fresh perspective
- No learned “bad behaviour” from within the organisation
The list is endless!