5 Key Considerations relating to Procurement Outsourcing
5 Key Considerations relating to Procurement Outsourcing
By definition; procurement is the acquisition of goods or services from an external source. Procurement outsourcing involves the day to day or long term management of a group of industry related procurement sub-processes, hence it is favourable that the goods or services are of good standard and are procured at the best possible cost to meet the needs of the acquirer in terms of quality, quantity, time, and location.
The 5 considerations to keep in mind when considering outsourcing your procurement of goods and services is as follows:
1. What is a procurement agency’s involvement in outsourced procurement?
Most commonly in the marketing or FMCG industry, procurement agencies specialise in prize sourcing which encompasses any item from products, experiences, appliances to travel packages. This involves the ongoing strategic management of consumer promotions and competition category groups – from understanding your budget, to developing the most effective strategy. Prize Voucher Agency is actually a market leader in this industry and drives the lowest total cost of ownership, through ongoing compliance, cost and supplier performance.
2. How do organisations benefit from strategic sourcing/procurement
This can be a very cost effective way to drive results in categories that are either unmanaged or where your organisation has strong procurement resources that can be redeployed to more strategic functions internally. From finding the products to negotiating discounts, warehousing the items and managing the delivery; Prize Voucher Agency guarantees service delivery while saving you money.
3. Does procurement outsourcing mean I have to cut jobs and transfer all strategic functions externally?
Not at all, in fact procurement outsourcing offers organisations the ability to focus on their core competencies and gain access to leading external capabilities in non-core activities, ultimately improving the overall level of performance and results across all categories without making large infrastructure investments.
4. Why you should consider outsourcing?
If your organisation seeks to improve overall procurement performance and as such achieve a greater level of cost savings on purchased goods and services, then it may become essential to trust the administration of your promotion campaigns to an expert company - without making additional internal investments.
5. What are the benefits to procurement outsourcing?
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Gaining more freedom and flexibility to focus on core competencies and to apply limited resources to critical business functions, and
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Attaining greater control and reporting on compliance to vendor contracts, SLA’s and pricing in addition to their internal procurement policies and procedures.
There are many things that you should know and be familiar with, prior to deciding to employ the service of a procurement company, for example; the company should analyse your specific market demand and strategy in order to customise a solution specific to your marketing plan and budget.
Prize Voucher Agency’s procurement services start at the very beginning of the promotion mechanics from suggested options that meet your criteria, negotiated bulk discounts, warehousing the items, to calling the winners, acquiring their delivery address, making the delivery and post delivery follow-ups. As a specialist winner fulfilment and prize sourcing agency, we are delighted to manage and administer all promotional aspects and winner enquiries.
For more information on the procurement services we offer and how we can customise them to meet your specific campaign requirements, please visit us on www.prizevoucher.com or send an email to This email address is being protected from spambots. You need JavaScript enabled to view it.
Tags: Customer Rewards, Warehousing and Distribution, Facebook Competitions, Prize Fulfilment Solutions, Prize sourcing, Custom prize packages