Why mid-market companies should invest Procurement Support Services?

 Procurement is the business management function that ensures identification, sourcing, access, and management of the external resources that an organization needs or may need to fulfill its strategic objectives.Businesses often have sets of policies and standard procedures to abide by when communicating with and selecting a supplier or vendor for their products and services.

The procurement process entails:

• Defining the policies to evaluate the proposals, quotes and vendors
• Researching and identifying customer needs
• Preparing the methods, tools and platforms to communicate with the suppliers
• Preparing a Request for Proposal (RFP) or Request for Quotes (RFQ)

Benefits of a procurement strategy?

• Corporate strategy and mro procurement strategy alignment

The biggest benefit of having a procurement strategy is to have alignment between the corporate goals and how procurement helps in achieving those goals.

• Measurable outcome – Define clear goals and what to expect

A well-defined procurement strategy provides a mechanism to measure the impact of effective procurement on meeting organizational goals. Since the outcome is measurable, it helps bridge the expectations gap between procurement and senior management of the company.

• Standard operations procedures

Procurement strategy brings clarity and provides guidelines on how purchasing should work in any company. It also provides guidelines for other employees on how to engage procurement, which in turns help achieve overall procurement goals.

• Cut costs

Through sourcing the right suppliers, mro cataloging staff actively help reduce their company’s outgoing costs and operational risks.

• Drive innovation

Procurement professionals hold a powerful position within a business. By choosing suppliers that add value and drive innovation, procurement teams can actively place their company in a more competitive position. Promote the kind of changes that you want to see by choosing suppliers that use the latest equipment, technology and processes.

• Utilize good data

There is a difference between collecting as much data as you can and basing your decisions on high-quality supply chain data. Data is there to make things simpler and less complex. If you are feeling hindered by multiple, complicated inputs and analytical processes, a portal like the one we use could immediately start saving you time.

• Drive growth in new markets

The best opportunities for value growth are sometimes found outside your established markets and supply chains. Moving into the unknown requires a lot of research, knowledge and assurance. Procurement support services are global, which means procurement professionals can quickly identify, assess and contact suppliers who have demonstrated experience within a particular market.

• Help with CSR compliance

Corporate social responsibility (CSR) is a big deal in business. The reputational damage that can come from non-compliance with an area of CSR can often be irreparable. A detailed pre-qualification process is imperative for procurement professionals. It’s not just about asking questions but also conducting audits where necessary. Obtaining and validating supplier information using an effective approach facilitates better and more agile decision making.

Summary

Procurement support services create collaborative relationships between buyers and suppliers. Parties work together to drive improvements in supplier performance and compliance with CSR policies, including those relating to sustainability, health and safety and the environment.