A dynamic economic environment and increased competition in all markets have a direct impact on the financial aspect of any company. In order to stay afloat, you need to fully focus on key products and ensure the stability of cash flows. The result was a more in-depth study of the procurement process – some companies found that procurement volumes can reach half of the company's annual income.
The search for ways to optimize procurement has led to electronic bidding. This has resolved a large number of issues and helped to stabilize financial flows. Electronic trading platforms have become a meeting place for customers and suppliers. Today government and commercial procurements have become faster, easier, more transparent and more economical. But progress does not stand still and many companies began to think about an even more advanced level of development of the procurement process.

Who needs outsourcing?

Before you understand who needs it, it is important to determine what it is.
Outsourcing is the transfer of certain functions to performers outside the company.
This approach is already actively used in areas such as IT, finance, advertising, marketing, personnel management and production. It helps companies to focus on their core business and, accordingly, increase competitiveness by optimizing core business processes. It makes sense to outsource all non-priority tasks, the implementation of which within the company requires the involvement of additional resources that were not originally intended for this.

Procurement outsourcing – fact or fiction?

In our case, we are talking about the transfer of carrying out procurement, tenders and communication with suppliers to organizations specializing in this area. Thanks to the electronicization of procurement, no one needs to prove the benefits of its automation. The tender scheme allows you to save money, and the electronic form optimizes paperflow and provides everyone with equal chances to win. If you add outsourcing to this list, the company will get an additional opportunity to reduce procurement costs.
Companies that provide procurement outsourcing services have a number of advantages:

a new level of automation – enhancing the effect of modern purchasing tools;
flexibility and adaptability are the main criteria that allow an outsourcing organization to adjust to your needs;
innovation and transparency – you only evaluate the results;
long-term contracts – companies are interested in continuous cooperation.

Where to use procurement outsourcing?

The implementation is possible in enterprises of any size. This will provide an opportunity to centralize the procurement function and get rid of a number of problems associated with the need to assign certain people who should be engaged in procurement within the organization.
Since electronic tenders are a relatively new phenomenon, their independent study can be a problem for employees who have never worked with such tasks before. In turn, outsourcing companies specialize exclusively in procurement and know about them everything that is available and relevant at the present moment.
Considering the statistics of countries that have long been using outsourcing, it is possible to draw conclusions about the reduction in procurement costs from 15 to 40% depending on the product category. Outsourcing is a strategic direction in the issue of procurement, so its development in the near future is indisputable. Reduction in operating costs, reduction in the number of employees and maximum automation of processes lead procurement outsourcing organizations to the forefront of innovative business solutions.

By the current moment

So far, only a few think about the possibility of transferring tender tasks to third parties. The stereotype that only independent business management can lead to success is refuted by many successful examples of the implementation of this scheme in the work of enterprises.
Opponents express these main disadvantages of outsourcing procurement:

loss of control over the procurement process;
poor quality work;
mistakes in choosing a service provider;
problems with employees who are outsourced.

With the right approach, all these questions are solved as follows:

prior approval of the persons in charge;
concluding a contract indicating all strategic objectives and functions with quantitative and qualitative indicators of work efficiency;
high corporate culture and integration of internal values in relation to people who can be outsourced.

In Ukraine, enterprises that provide procurement outsourcing services are gradually emerging. Moreover, electronic trading platforms also actively develop their functionality in order to facilitate the work with tenders. In particular, they provide tools for analyzing conducted tenders. For example, SmartTender has already decided on its development strategy for a long time and is actively introducing new technological solutions to ensure the most convenient and fast interaction between organizers and performers. Choosing the most suitable platform in addition to outsourcing services – in the near future, companies will be able to appreciate the advantages of this tandem.
Organizations that are committed to improving their business models see procurement outsourcing as a real tool for finding faster, cheaper, and more innovative ways to optimize financial flows. The market requires new solutions and increasing competitive advantages for each company.