Procuright assist both small and large companies that are either setting up a procurement function for the first time or are looking to improve or transform the efficiency and effectiveness of their procurement activity. We consistently achieve our aims, to ensure our clients are able to increase the efficiency of their procurement and achieve a better outcome for their businesses.

With the rationale to outsource non-core services increasingly compelling, many organisations are finding that strategic, well-managed procurement outsourcing is a sure route to securing significant cost savings and efficiencies.

The Benefits
of Outsourced
Procurement

You'll have your own objectives and Procuright work towards these. However, some of the more common recognised benefits and client company goals of procurement outsourcing include:

Outsourced Procurement

Improved Focus on Core Company Activities

Outsourcing indirect procurement can free up your company to focus on its strengths, allowing your staff to concentrate on their main tasks, looking after your customers and growing the business.

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Increased Performance & Efficiency

Your core team might be very good at many things, but nobody is perfect at everything. By outsourcing particular tasks, companies are often able to greatly improve performance by drawing on the specialist skills of experts in certain fields.

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Controlled Costs & Cost Reduction

Efficiency and costs are linked. As efficiency falls, costs increase. Our supply chain experts will re-work processes and drive down costs. Cost-savings achieved by outsourcing can help you release capital for investment in other areas of your business.

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What is Procurement Outsourcing?

Procurement outsourcing is the process of transferring specific procurement activities - including sourcing, category management, contract management, transaction management, supplier relationship management, or a combination of some, or all of them - to an external service provider. In turn, a company which does so expects to increase its focus on core spend and competencies, reduce overall costs and realise bottom-line savings.

Companies are choosing to outsource only their non-core spend and non-core processes (indirect spend or overhead), as they are less critical to the manufacture and production of finished product.

  • outsourced indirect procurement
  • procurement strategy
20-40%

Indirect spend can equate to 20-40% of total revenues of a company. However, it is quite often unsupported or under-supported by the procurement department, as developing in-house expertise can be challenging and costly. Time - or the lack of it - is often a limiting factor too.

80%

Overhead costs such as property and energy continue to rise and yet in many manufacturing companies 80% of the effort to reduce costs is targeted at direct materials and labour costs.

£150k

A business that achieves a gross profit of 40%, has overheads of 30% of turnover and is able to achieve a sustainable 5% reduction in overhead costs, will increase operating profit by 15%. On an annual turnover of £10m that's a £150k bottom-line improvement; the equivalent to reducing the cost of sale by 2.5%, often a much more difficult task.

THE BUSINESS CASE FOR OUTSOURCED PROCUREMENT

Simplistic, but it illustrates the need for a structured and consistent overhead cost reduction and management programme, ideally within a wider business improvement process that enables organic growth, acquisitions and working shareholder exit strategies.

Of course overhead cost reduction is not a given but what is certain is that 100% of our effort is expended on seeking ways in which we can reduce costs and increase the profitability of your business.

Outsourced Procurement

Developing the Procurement Strategy

Procurement strategies often focus on areas such as cost reduction, mitigating risks, rationalising expenditure, supplier relationship management, improving processes and business efficiency, green purchasing, contract management, category management and aid legal and regulatory compliance.

Indirect Procurement outsourcing constitutes a growing trend of SME and corporate procurement strategies. In fact, research has suggested that major companies will likely expand the scope of outsourced procurement in the coming years. Procuright provide outsourced procurement management to yield your expected benefits to fall in line with your overall procurement strategy.

Procurement Strategy
Procurement Management

Corporate challenges that define
your procurement strategy

What are your principal objectives? Are they focused on bringing new products or services to the market? Or selling more of what you already do? There is no short, definitive list of considerations that should be included within your procurement strategy. Priorities change over time and strategies must be reviewed and revised to reflect changes in circumstance and focus. You may need to review how you make procurement decisions and who is authorised to make those commitments, how to maximise value, your processes for dealing with suppliers and invoicing. Or wider issues such as compliance and corporate and social responsibility.

Delivering cost savings & efficiencies
through robust outsourced procurement

We're strategic thinkers and hands-on implementers, familiar with all the latest supply chain tools, techniques and technology. But unlike most outsourced procurement functions, where the deliverable is often a recommendation, our team and partners will roll up their sleeves, get stuck in and implement the right solution.




With the rationale to outsource non-core services increasingly compelling, many organisations are finding that strategic, well-managed procurement outsourcing is a sure route to securing significant cost savings and efficiencies. However, whilst the opportunities are significant, so are the risks, if it is not run well. Procuright can help you design and implement a procurement strategy that meets your business needs and mitigates risk along the way.

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