Historically, when a company had a capability requirement but did not have the internal infrastructure and resource pool to support it, they turned to business process outsourcing (BPO).  It's tried and true, and when managed correctly, it became a tremendous business advantage - and countless BPO providers entered the market to fill the need.  Particularly for the Procurement and Sourcing function, the relative immaturity of the profession - coupled with the universal need to improve the bottom line through cost savings – firmly cemented the business case for businesses to hire third-party support and procurement services providers

But the cost model for traditional procurementservice providers and consultants often means that only large companies can afford them - and to make things worse, contracts are often constructed in such a way that prevents any adjustments to the procurement support team’s staffing levels, regardless of the operating tempo of the business.

Sourcing organizations in smaller companies can end up stuck – they know the solution is not to hire full-time procurement resources in times of peak need and then lay them off when things slow down. But they also know not to sign convoluted contracts with management consultants and offshore BPO providers without any way to demonstrate a return on investment. So how do they solve this dilemma both in the short- and long-term? What happens when their procurement and sourcing requirements inevitably change?

Source One has helped companies solve this very problem with its innovative Sourcing and Procurement Retainer Model

Just as we’ve helped industry leaders with complex sourcing and procurement operations realize the limitations of traditional business process outsourcing, we have supported small and medium-sized companies (e.g., manufacturers) in achieving their strategic sourcing goals with a flexible, lower-cost option. For these companies, having 100% access to a large pool of sourcing professionals is overkill and not affordable; once the significant sourcing activity is complete within a particular category, the procurement operations enter a “business as usual” phase (until a contract comes up for renewal again, or you want to redesign a product line, etc.). Under a lower-cost retainer model, companies get a customized, scalable solution where resources go where they are needed and are not long-term fixed costs.  For the cost of one full-time resource, you get access to an entire team of sourcing professionals and category subject matter experts – who can ramp up or scale back as your requirements dictate.

Every business has different requirements, and the size of your organization doesn't need to prevent you from getting the procurement and sourcing support you need. Head on over to SourceOneInc.Com to learn more about this unique offering. 
Share To:

Ken Gaul

Post A Comment:

0 comments so far,add yours