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vendredi 23 décembre 2016

Info Post
By Carolyn Watson


Complex businesses have many different processes and styles of management. However, it is not possible to be the best at everything. Therefore, sometimes it is useful to focus on the activities that form your core competencies while leaving other specialized functions to specialists. In general, Procurement Outsourcing CT lets professionals handle what they are trained for, and allows you to concentrate on what you specialize in.

Procurement outsourcing (P/O) denotes the application of a consulting company to assist you in purchasing raw materials and parts from various suppliers. Experts in this industry are experienced in numerous ways to enhance the efficiency and effectiveness of the ordering process. In addition, due to their network of contacts in the industry, they can make introductions and understand the sales process of these suppliers, in order to obtain mutually beneficial business relationships.

Most organizations that have a clear definition of direct and indirect P/O have a well-established supply chain and highly refined processes, tools, etc., for their direct P/O requirements. Also, while most enterprises have dedicated procuring teams for their direct procuring, very few have resources focused on indirect procuring as it is wrongly perceived to be less strategic and less valuable.

Acquisition of goods at better prices and better quality has more to do with managing your costs than in increasing your revenues. But managing your costs can lead to higher revenues. If you control your costs you can charge your customers cheaper prices which increases demand and undercuts the pricing of your competitors. This is one of the benefits of using a consultant that assists you in purchasing goods at lower prices.

Another benefit of using a third party consulting firm for purchasing and acquisition services is the additional level of internal controls that it produces. A major element of having significant internal controls is the checks and balances related to segregating tasks. Through P/O, you will have a further separation of duties that adds an extra level of review to the task. This further improves your controls.

At the foundation of a decision to obtain procurement services is the potential return on investment that companies earn on behalf of their assets. Typically companies will have a limited number of financial resources that are easily accessible. Due to this fact, they will generally have to turn their point of focus toward investment opportunities that aggressively enhance their competitive edge.

Procuring goods including both parts and raw materials is a time consuming and difficult process. Outsourcing this service allows your organization to rely on other specialists who can significantly reduce the costs and errors commonly associated with the procurement end of business. So consider using a consulting firm today.

According to the law of comparative advantage, a business should invest most of its time and other resources in arears where it is best adapted and has comparative advantage. P/O enhances optimal production by transferring other functions. Ensure to assess your operation and determine which function to transfer.




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