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Why Hire a Procurement Company?

September 20, 2011

To hire or not to hire a procurement company?—this is the question most business owners like you ask. More often than not, your answer will be “not to hire” because you view this as another expenditure for your company. But what you do not realize is that the cost entailed for seeking the services of a procurement company will ensure efficiency; thus, giving high value to your money. It does not only allow you to get rid of the burden that is involved in every procurement activity. It will also offer you things that will work to your advantage of your business. Here are some of them:

  1. It takes the “dirty work” out of your firm.
    The activities involved in the procurement process are too many. Before the requesting department is able to get a rim of bond paper, a procurement staff member makes several calls to ask for quotes. Once received, he or she evaluates all of them then decides on which among the vendor will supply it. Imagine then how many times your procurement team will do this every day to attend to the purchase requests of each employee? This is tedious and time consuming. So get for yourself a procurement company and take this “dirty work” out in the hands of your people. Instead, let them do other important tasks.
  2. It has the extensive network, local or international, that you currently do not have.
    A procurement company has been in the industry for so long. Locating prospective suppliers, whether locally or internationally, is not a hard task for it. This is because it already has the network that can sufficiently provide names and contact details of the vendors appropriate for your needs. In fact, it can readily tell you which supplier can best address your requirement. Best of all, it can point you directly toward the lowest selling supplier.
  3. It has an experienced team that has already worked for various types of organizations.
    A procurement company has an established procurement team that has worked for different kinds of businesses; hence, it has identified the techniques that will make it easy to negotiate. Because the members are rich with experience, they likewise know the ins and outs of buying for corporations. They make up good traders.
  4. It is easier for you to keep track of your operational expenses.
    Instead of all your departments or branches doing their own procurement activities and reports, you will be able to receive a single report from the procurement firm that you employ. For this reason, it will be simpler for you to read the procurement report, track expenses and analyze if they are within reason.

Before hiring a procurement company, though, make sure that you have met with it and you have laid down all your business goals and expectations. You also have to highly consider its qualifications. In this way, you will be aiming for the same reasons to achieve success.

Read more articles by Nelson at Google Knol

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