Outsourcing Low Value Procurement

Outsourcing's formula for success is based on leveraging an external service provider's economies of scale, expertise and scaleability of resources, enabling the buyer's enterprise to accomplish new things or do things that were too expensive internally.

Source Deloitte: and Touche Tohmatsu

Why Outsource?

• Procurement department can concentrate on strategic spends and manage a supplier who can leverage non strategic spends.
• May be increasingly difficult to deliver savings for non strategic spends, outsourcing to a company who can leverage multi client spends through aggregation can deliver substantial cost savings.
• Transactional costs are expensive.
• Procurement staff not motivated by administrative burden.
• Procurement needs to be seen as a strategic activity, not an administrative task.