The boundaries between providers of full procurement services and those offering them on an interim basis are being blurred.
That is according to Peter Smith, writer for Spend Matters UK, who explained that many companies have varying strategies when it comes to dealing with indirect procurement, with some wanting full responsibility placed in the hands of the purchasing firm.
However, others will want only want to outsource parts of their business and there are some companies who will have particular requests, requiring firms to be flexible in their operations.
“The choice is not simply whether to outsource all indirect procurement, or the entire P2P management process. It doesn’t have to be all or nothing – you have a vast range of options to consider,” he explained.
Heinz may want to consider outsourcing after its gross profit margin decreased 90 basis points to 35.7 per cent in the first quarter of 2011-2012 financial year, which it put down to “significantly higher commodity costs”.
Source:http://www.purcon.com/news/news-archive.php?title=Procurement+companies+’should+consider+all+outsourcing+service+options’&id=800713984
