This is because they are able to approach the procurement function in a more strategic and holistic manner.
As such, they are more likely to explore the advantages and possibilities of partnering with an outsourcing provider to drive high performance in their business.
Sustained Spend Savings Professional sourcing BPO companies will typically have a proven track record in driving high performance for clients - and this track record is based on deep sourcing savings.
The vendor will enable the procurement organization to generate significant net savings across various purchasing categories that are being outsourced, sometimes achieving double-digit savings for the entire project.
Improved Transparency & Increased Control over Procurement Expenses Sourcing BPO vendors offer a unique set of tools to assist business and government entities to gain maximum control over spend.
One of the key challenges faced by chief procurement officers today is how to achieve the necessary visibility, at scale over global spending.
With the BPO provider's end-to-end capabilities, combined with analytic tools, the client organization is able to gain a more comprehensive view of who is purchasing what from whom.
This in turn contributes to better contract management and control over greater spend percentages.
A typical procurement outsourcing arrangement will provide purchasing operations including sourcing, requisitioning and payment for the clients of the procurement organization.
Such an arrangement helps to advance the latter towards high performance in various ways including increased visibility and management control across the enterprise, lower procurement operating costs and reductions in indirect spend.
Better Compliance Procurement masters have been found to excel in the area of category spend compliance, which comprises the share of spending that is managed through a formal process.
An increase in category spend compliance to as high as 95% across the entire enterprise can lead to a reduction in internal costs by as much as 3-5%.
Sourcing BPO companies help organizations to improve compliance through an increase of management control over spend.
For instance, an organization may be assisted in increasing contract and channel compliance as a way of driving performance.
Access to Expertise Access to broad and deep procurement knowledge is a key advantage of the outsourcing relationship enjoyed with sourcing BPO providers.
With an outsourcing solution, the organization is able to maximize the benefits of having access to intellectual capital, sourcing tools and techniques, as well as supply market information.