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Procurement

Procurement Outsourcing is the transfer and optimization of specific sourcing and procurement activities to a third party managed service provider and is a growing segment in the outsourcing industry. Typically the focus is on improving the way indirect goods and services are sourced with the overall goal of having more spend under management to drive savings. Procurement Outsourcing does not focus on reducing labor costs to deliver savings like most outsourcing initiatives.

The benefits of Procurement Outsourcing are:

• Standardizing your sourcing and procurement processes
• Aligning your sourcing objectives through a strong category planning process
• Creating value (i.e. savings) by leveraging sourcing expertise and market intelligence on-demand
• Sustaining value through process discipline in operational procurement
• Improving overall supplier performance by holding suppliers accountable

You can approach procurement outsourcing in two primary ways. You can either focus on all of your indirect goods and services in a holistic approach, or, you can target specific categories where you believe a third party can add the most value.

Alsbridge can guide you through the procurement outsourcing process while transforming your procurement organization by:

• Identifying baseline spend by industry standard categories
• Assessing current indirect procurement processes and policies by comparing them to best practices
• Confirming market capabilities and overall savings potential
• Assessing category suitability for outsourcing and identifying associated risks for your organization
• Developing and gaining alignment across the organization on the business case
• Assisting in defining your service requirements and expectations
• Managing the process to select a service provider
• Leading contract negotiations with the service provider
• Leading operational alignment activities to seamlessly transition to the service provider