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Procurement Outsourcing
ByTrang NguyenFull-time MBA, Class of 2018
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Structure
Drivers of Procurement Outsourcing Problems of Procurement Outsourcing Managing Procurement Outsourcing Factors affecting Procurement Outsourcing decision
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3 Drivers of Procurement Outsourcing
Cost Advantages
• Economy of scale• Reduction of HR,
training, office space cost
• Better market knowledge
• Closer relationship with suppliers
Focus on Core Competencies• Efficient process• Better information
management & purchasing analysis
Increase Profit
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4 Problems of Procurement Outsourcing
Reduction of control
Outsourcing Management
Integration
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5 Managing Procurement Outsourcing
1. Financial and commercial management
2. Contract management and compliance
3. Governance
4. Service performance management
5. Issue and dispute management
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6 Managing Procurement Outsourcing
6. Transition and transformation management
7. Change and request management
8. Multi-service provider integration
9. Supplier risk management
10. Documents management
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7 Factors Affecting Procurement Outsourcing Decision
Cost/BenefitAnalysis
Economy of Scale
In-house competencies
Complexity of products
Ability to handle
dispute/legal issues
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Thank you!
Q & A