What is Procurement Outsourcing?
As its name suggests, procurement outsourcing is the action of hiring a 3rd party to manage and outsource materials for manufacturing. This allows a company to take advantage of the 3rd party’s resources and network to bring about an extensive list of items. Here are the steps we take when you engage with our procurement services.
⦁ get request from client OR present concept to client
⦁ get feedback
⦁ source suitable factory
⦁ negotiate prices
⦁ confirm req’d specs, compliance, test req’ts
⦁ confirm prices/PO/ETD
In-House or Outsource Procurement?
The infinite forms of furniture mean that sourcing the correct components – from tiny screws to large blocks of wood – along with a dedicated manufacturing facility, is a crucial piece of the puzzle. Sounds simple on the surface, until companies realise the complexity and vast number of factories scattered worldwide. For the fortunate few with in-house teams to overcome this barrier, procurement becomes a competitive advantage. For others, typically small to mid-size firms who lack the resources to develop procurement as a core competency, they can look to outsource their procurement. Besides the time savings to train one’s staff, the 3rd party outsourcer can pass down the reduced cost per transaction due to economies of scale, thus benefitting all stakeholders.
Leveraging our 20 years of on-the-ground knowledge in China, SE Asia, Brazil & Europe to simplify communication and travel, de-risk client sourcing, enabling clients to focus on front-end operations..