The Trade-Offs of Outsourcing Procurement
Before you decide to outsource routine procurement activities, consider what your organization values most.
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When organizations deem that certain procurement activities do not need to be handled in-house, they may opt to outsource those activities. Some organizations look to outsourcing as a way of streamlining routine procurement tasks that do not need to be handled in-house. For example, tasks such as developing and executing simple contracts, which are not seen as integral to the organization’s overall business strategy, present the potential for organizations to free up employee time to focus on more strategic duties.
APQC’s research indicates that outsourcing organizations spend more on procurement efforts than those that do not outsource, but that they also have performance advantages and opportunities to reduce waste. The infographic below discusses potential advantages and opportunities associated with outsourcing procurement activities.
Read the related article from the November issue: The Trade-offs of Outsourcing Procurement
ABOUT APQC
APQC helps organizations work smarter, faster, and with greater confidence. It is the world’s foremost authority in benchmarking, best practices, process and performance improvement, and knowledge management. APQC’s unique structure as a member-based nonprofit makes it a differentiator in the marketplace. APQC partners with more than 500 member organizations worldwide in all industries. With more than 40 years of experience, APQC remains the world’s leader in transforming organizations. Visit us at www.apqc.org, and learn how you can make best practices your practices.
About the Author
Bob Trebilcock Bob Trebilcock is the editorial director for Modern Materials Handling and an editorial advisor to Supply Chain Management Review. He has covered materials handling, technology, logistics, and supply chain topics for nearly 40 years. He is a graduate of Bowling Green State University. He lives in Chicago and can be reached at 603-852-8976.Subscribe to Supply Chain Management Review Magazine!
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