Asking another business or individual for help is always a big step. The natural instinct leads us to believe that we can solve everything on our own and we know best how our business should run. Nevertheless it is proven that another pair of eyes helps to look for a needle in a haystack. More and more businesses rely on other businesses to deliver their services and products.
Thus it is not surprising that procurement is a subject which gets outsource more and more often. Europe and North America have already a bunch of big specialist companies who help businesses to improve its procurement, both strategically and operational.
It has to be a decision driven process which decides the way you setup your procurement. Not every business has the size to have its own procurement department but it is an important keystone to your business. Therefore you have to make a careful decision how to process this. The key to arrive at a decision has to be the required skills which are necessary to run a successful procurement environment. If you are not sure if you have the required skills you should start to have a look outside your business. You don’t need to outsource your procurement yet but you should start to make an investigation to understand the subject better. Too many businesses underestimate this side of the business and concentrate on the sales side and forget about procurement. For them it is just a spending manager who follows the orders of the other business stakeholders. This is a wrong perception and will cost your business dearly. Modern procurement is cost reducer and value broker. It is proactive and helps to create value to the business. It starts right there where you decide and develop new products and services for your business.
As said before you have to make the decision for your own business but be sure you make a decision.
If you are more interested in the subject just download the file below giving an overview on the industry setup in Australia. Like in most countries worldwide it has multiple companies offering similar services but it lacks the number and size which you can experience in Europe or North America.
Klaus Weghaus is an experienced professional who has gained knowledge in international project management and purchasing. He served more than nine years within a big OEM of the automotive industry having various positions within Product Development and Purchasing. Klaus oversees the creative direction at Rhenus Consulting as well as business development. As a marathon runner he will ensure that he does a marathon for you if this is required.