Procurement outsourcing

Procurement outsourcing

Outsourcing of procurement is the transfer of organization and management of procurement of the entire range of goods, works and services for your company.

We will analyze your needs and procurement system, identify potential for process optimization, cost reduction and select a unique solution within the framework of strategy and budget.

The outsourcer company takes care of all the organization and servicing of the category (IT and telecommunications, support, office supplies and office supplies, and others) in accordance with the customer’s wishes, enshrined in the purchasing strategies. The work takes place according to the “one window” principle, when all purchase requests are sent to the outsourcer. The outsourcer becomes one supplier for the transferred categories of goods and services, which sharply reduces the amount of contract work and accounting.

The average amount of savings in the procurement budget when outsourcing is from 10-40%, depending on the specifics of the category, the level of elaboration of the categories, and the presence of a corruption component.

Why is procurement outsourcing of interest to companies in Moldova today?

Allows you to save your purchasing budget by 10-40%
Reduction of personnel and costs for the Payroll Fund (WF) through the transfer of hiring, training and personnel management.
Secure and transparent processes.
Working with one consolidating supplier.
The outsourcer becomes one supplier for the transferred categories of goods and services, which sharply reduces the amount of contract work and accounting.
The Outsourcer company takes care of all the organization and maintenance of the category (IT and telecommunications, support, office supplies and office supplies, and others) in accordance with the customer’s wishes, enshrined in the purchasing strategies.
The work takes place according to the “one window” principle, when all purchase requests are sent to the Outsourcer company.
The outsourcer becomes one supplier for the transferred categories of goods and services, which sharply reduces the amount of contract work and accounting.

Transferring management of the procurement and supply process allows you to:

– Build purchasing processes in the required direction or for the entire volume of purchases
– Reduce payroll costs by transferring hiring, training and personnel management
– Obtain favorable conditions for the cost of purchases, consolidate purchases from different companies, increase the volume of the transaction and thereby receive more favorable conditions
– Reduce paperwork by receiving an invoice from one Supplier
– Improve the quality of the procurement process: selection/verification/competition among suppliers
– Manage the seasonality of purchases
– Ensure cost transparency, analytics, reporting
– Interact with a dedicated personal manager
– Outsourcing of supplier and procurement management is necessary when
– The company is growing rapidly, but the purchasing department cannot cope
– The company interacts with many suppliers, has many contracts in each category, large volume of purchases and high transaction costs
– We need centralization of procurement, category experts in areas new to the company
– One-time, unpredictable purchases arise
– Large volumes of non-core purchases are required (stationery, household goods, i.e. supplies for management needs

When and for which companies is outsourcing of procurement and supply relevant:

When the volume of purchases is small or they are carried out rarely, it is not profitable to have your own supplier. The Company has the opportunity to entrust the work (or part of the work) on supply to an outsourcer, while they themselves concentrate on developing their business.
When you have to make atypical purchases, and the competence of existing buyers is not enough. In this case, employees of the supply department can focus on core (volume-generating) purchases, and the involvement of an outsourcer helps to increase the overall efficiency of procurement (achieving a higher level of savings on purchased goods and services) without additional investments in organizing the process.
When procurement is carried out by technical specialists (administrator, HR manager, etc.) who do not have the necessary market knowledge. For many Companies, supply is not a priority area of activity. But, at the same time, without organizing a competent procurement and delivery scheme for goods, an organization simply cannot develop while carrying out its commercial activities.

For which companies is procurement and supply outsourcing relevant:

Enterprises engaged in trade and product promotion
Companies with a large number of branches, factories, retail outlets
International companies implementing global procurement standards

When outsourcing of procurement and supply is relevant:

When the volume of purchases is small or they are carried out rarely, it is not profitable to have your own supplier. The Company has the opportunity to entrust the work (or part of the work) on supply to an outsourcer, while they themselves concentrate on developing their business.
When you have to make atypical purchases, and the competence of existing buyers is not enough. In this case, employees of the supply department can focus on core (volume-generating) purchases, and the involvement of an outsourcer helps to increase the overall efficiency of procurement (achieving a higher level of savings on purchased goods and services) without additional investments in organizing the process.
When procurement is carried out by technical specialists (administrator, HR manager, etc.) who do not have the necessary market knowledge. For many Companies, supply is not a priority area of activity. But, at the same time, without organizing a competent procurement and delivery scheme for goods, an organization simply cannot develop while carrying out its commercial activities.