10 Key Benefits of Procurement Consulting You Need to Know About
10 Benefits of Procurement Consulting You Need to Know
Is your business struggling with implementing procurement solutions? Here are 10 key benefits of procurement consulting you need to know about.
Keyword(s): procurement consulting
It’s happening across all industries. Corporate leadership is holding departments responsible for their bottom lines. Can procurement consulting help them improve their resources and execution?
Internal procurement teams manage procurement efforts for all departments in their organization. These departments don’t always receive the special focus they need. Take marketing, for example. Print procurement and creative execution are difficult to manage and improve.
Departments need to centralize standards with procurement to build a working relationship. That means deciding best applications for business process outsourcing (BPO). External procurement consulting helps marketing and other departments improve outsourcing. They help those teams align with corporate and internal procurement initiatives as well.
The “New Marketing”
Let’s use marketing as an example. Marketing teams weren’t always measured by their direct contribution to revenue. Now, they have to align themselves with corporate goals directly. They need to optimize their resources and creative capacities. Most importantly, they need to contribute directly to corporate ROI.
Not an easy task. But procurement consulting helps them drive down costs and improve operational performance. That means better capabilities and better campaigns.
Here’s What You’ll Get from Procurement Consulting
The following are ten areas procurement consultants can improve procurement methods. They can help departments align outsourced processes with marketing and corporate objectives as well.
Most important of all, they can help drive down costs and supercharge performance. We will look at opportunities in marketing as an example.
Align with Corporate Objectives
What are your corporate goals? Do your marketing operations align with them? Cost will be the first concern. Procurement consultants can help you identify weak points in your operation. An external team can focus on outsourcing problem areas within your team. You’ll get the best performance at the best price available. Try doing that in-house!
Perform a Formal Assessment
Use procurement consulting to do a formal assessment of your department’s processes. You will see the cost benefit of BPO to achieve your fiscal and performance goals.
An external procurement team will help you decide what to outsource to meet corporate performance and fiscal objectives. It’s a 360-degree analysis you don’t want to do alone.
Companies who execute a formal assessment receive greater value through their visibility, brand control, and quality. They can identify opportunities to outsource efforts to more efficient external parties.
Get Stakeholder Support
Following a formal assessment, marketing teams will have the findings they need to gain support from internal stakeholders. With the help of a procurement consultant, they will have identified at least one of the following goals:
- Methods for centralizing standards between procurement and marketing
- Best applications for business process outsourcing
- Aligning outsourced processes with performance and fiscal goals
- Cost reduction
Getting the support of stakeholders is all about visibility. Marketing teams and others must determine exactly where their budgets are going. They must find solutions for improving how that money is spent. Finally, they must make sure their goals line up with those of the company.
Use Business Process Outsourcing (BPO)
Quality procurement consulting starts with helping teams improve performance while cutting unnecessary costs. Business process outsourcing helps teams do just that. Executing BPO can be time-consuming. Procurement consulting experts have expertise in this area.
Most companies have goals they can’t fulfill. That’s because they won’t have the expertise in-house. Outsourcing processes adds any amount of expertise companies need. It can also free up dollars and time for existing employees.
Outsourcing the BPO process is popular. External procurement consultants allow companies to apply complete focus on BPO, maximizing results. That’s not an easy task when done in-house.
Improve Operations and Performance
Reach the goals of your team and your company. Those are your goals when outsourcing. There could be a half-dozen areas where a team can achieve better performance. Here are some of the problem areas they can overcome:
- Not enough internal knowledge or training
- Time-consuming processes
- Inaccuracies; problems aligning with corporate goals
- Poor standardization
Specialists will have worked out all these issues. This applies to any process you choose to outsource.
Drive Down Operational Costs
Words like ‘cost-effective’ describe how companies get low prices without hurting performance. This is the mantra of procurement teams, including in procurement consulting.
Outsourcing processes make little sense if they don’t have friendly pricing. External procurement consulting can help identify the most cost-effective solutions for any department.
Outsourcing procurement processes lower internal costs as well. Internal procurement teams can take on a more nimble, strategic approach. They can spend less time bogged down by individual processes in each department. That includes aligning any changes in corporate objectives.
Achieve New Capabilities
With procurement outsourcing, the sky is the limit. There are cost-effective solutions for any process. You have to keep aware of new opportunities in the evolving procurement market.
Managing BPO on an ongoing basis in-house is time-consuming and cumbersome. The key to successful BPO over time is to stay close to your procurement consultant. You will need their expertise to identify and decide upon new solutions.
Your corporate office will demand swift time-to-market. That’s because it provides competitive advantages for your company. Teams with processes that drag will lose out on hitting the market first. Procurement consulting can help hose team ensure that never happens.
External procurement teams can help you identify competitive solutions. You will have a better chance of beating your competition. The revenue opportunities will justify any cost.
Meet Corporate Fiscal Expectations
The final goal is to meet the objectives of corporate stakeholders. This is the ultimate measurement of a team’s performance. It justifies the methods by which they do business. Acting upon good outsourcing opportunities will make this process easier. Procurement consultants help you make the end result the best it can be.
Identify More Opportunities
Keep working with a procurement consultant to keep processes up to date. Your corporate KPIs will evolve over time. Your marketing team and others will need to evolve processes and spend right along with them.
Start Your Journey
You can get started with your formal assessment right now. Contact Stennett Consulting for a free consultation to begin.