MRO Procurement

Benefits of outsourcing procurement

 

 

MRO Procurement Support delivery model includes on-site, near-shore and off-shore resources. On-site resources associate more closely with clients and stay better connected while dealing with big sourcing projects or while managing a complete category.

Off-shore resources associate with routine activities, transactional activities, sourcing analytics, market research, emergency purchases and even leads RFPs when client and vendor communications are managed remotely.

The benefits of procurement engineering services are tremendous. The spent on production is most often quite substantial and affects the ROI. Procurement outsourcing reduces the expenses and offers a very attractive ROI. Outsourcing procurement will definitely charge their fees but the increment in the ROI will multiply in three to eight folds annually.

Procurement outsourcing provides financial and strategic advantages that are valuable and compelling. It includes the following:-

  1. Cost Reduction

MRO Procurement service providers combines sourcing and category expertise to areas that are not supported by procurement teams. This leads to greater cost management and increased savings. MRO procurement service providers help in spot buy, tail-spend purchasing support, compliance tracking and reporting services, and provides enough time to internal procurement team to focus more on strategic deals to generate more profits.

  1. Operational Efficiencies

MRO procurement service provides operational cost advantages by developing dedicated, highly trained, and SLA-driven processing teams. Procurement support also provides advantage of lower-wage, highly skilled off-shore resource centers, such as Asia and Central Europe. The centralized transaction management teams delivers greater services at lower costs and also free up internal resources to perform higher-value tasks.

  1. Flexibility

Procurement outsourcing helps companies to sharply increase and decrease their procurement teams internally to match the rapid change in the market trends. Usually procurement service providers use an on-demand service model. This model allows the clients to pay only for the resources they require and the services they have used.

  1. Focus

Pareto’s 80/20 rule fits well with procurement. Companies spend 80% of their money to produce only 20% of the products and the remaining 20% of the expense structure are frequently untapped. mro cost reduction services focus on this irregular and unnoticed expense structure to derive value, provide strategic importance and provide visibility to stake holders.

  1. Expertise

Procurement service providers are professionals and expertise in the fields of function, industry and category. They have immense knowledge a gained from providing services to multiple clients, sectors and geographical conditions. They can provide their expertise with ease in suitable practice, market intelligence, price benchmark, sourcing tools and contracting templates received from the huge amount spent on clients.

  1. Savings and Compliance Tracking

Companies have several categories, sub-categories, baseline assumptions and saving formulas with limited control of end-user and limited visibility in compliance. This makes it easy for the company to lose their savings. MRO procurement services offer customized dashboards for client’s specific expense categories and procurement processes. This provides insightful, relevant and actionable procurement performance tracking.

The reporting is provided via an interactive and customizable procurement dashboard that allows drill-down to non-compliance causes at a category, BU or supplier level and enables timely corrective actions.

  1. Stakeholder Satisfaction

With well-structured SLAs and clear performance targets, procurement outsourcing partnerships improves the service levels and greater overall support for business units. Some organizations opt for partial outsource procurement model.They precisely aim of transforming their overall service delivery model and increase their value to the business, often with drastic results.