Business process outsourcing (BPO) allows the identification and delivery of value of the company’s supplier expenses. Procurement companies, in turn, enable the provision of quality sourcing services in which capacity spans the entire spectrum of supplier direct and indirect expenses. By capability, we mean a combination of the right people and expertise, the most effective and efficient processes, and the right technology to maximize efficiency and deliver the most effective results.

Sourcing for successful acquisitions

Managing vendor spend by sourcing BPO vendors goes beyond setting up the sourcing model, choosing, and recruiting vendors. Rather, this involves a continuous improvement program without any end points, targeting value within the supplier’s supply chain and buyer’s organization. Effective sourcing BPO providers are characterized by their efficient and rigorous processes, the use of experts in the deep sourcing market to identify new sources of value and equipment that deliver sustainable results year after year, beyond direct savings based on the price.

To be successful in implementation, sourcing must cover more than direct company materials. By leveraging the capabilities of a BPO specialist, companies can access the people, processes, and technology necessary to manage all vendor expenses, including hard-to-influence categories such as professional services.

So what value does a BPO partner bring to spending management?

The value of sourcing providers means greater savings through process and category expertise, accelerated benefits through leveraging existing expertise and technology, leveraging the scale and capacity of a larger organization (rather than blocking costs significant fixed to obtain the required experience), as well as better results of the companies through access to market knowledge and benchmarks.

BPO sourcing companies can offer better managed spend, both in terms of efficiency and effectiveness in delivering the following:

• Consistent and competitive professional fees that are sustainable for both buyers and suppliers
• Better allocation of resources to results or deliverables
• Lower outlay without added value
• A reduced number of assignments that allow you to challenge this value.
• Project deliverables that meet costs and deadlines with fewer cost overruns
• High-performing providers that are rewarded with a higher share of the expense.
• Full use of experience and knowledge in multiple projects
• Reduction of business and process risk
• Improved visibility and expense management.
• Single point of responsibility for supplier performance.