Big Deal! Well, it really is when the company’s sourcing and procurement groups get an opportunity to make valuable strategic contributions to the largest transactions the organization will likely execute, with some deals reaching nine and even ten figure dollar values. It is a unique opportunity for the procurement professionals to shine.
According to the latest report by Alsbridge Inc., “The sourcing and procurement units of large corporations have a unique opportunity to make a strategic contribution when their companies look to outsourcing.” Some of what the department must do goes back to sound procurement practices, but the nature of outsourcing also requires some counterintuitive behaviors. Certainly, buying services is different than buying materials or supplies; and outsourcing transactions further increase that complexity. Ultimately, the corporate procurement professional is there to ensure the fairness and long term success of a non-commodity relationship.
The report elucidates the four key strategic contributions that the procurement outsourcing professionals can make during the provider selection process adding value to the outsourcing relationship. These include:
- Articulate the “why” of any given position.
- See the forest from the trees.
- Know the market.
- Create the conditions for success.
“Part of what must be done is what these groups do on a daily basis, albeit with a slightly different lens due to the size and complexity of the transaction,” says Dieter Thompson, president, Alsbridge Inc. “The most strategic part, however, requires the group to step up to a much higher-value playing field.” That journey might feel a little uncomfortable, as it requires learning and practicing a few different roles. When those roles are fulfilled by the procurement professional, though, the contribution to value delivered from outsourcing can literally multiply.
Chip Wagner, CEO, Alsbridge adds, “Alsbridge believes in partnering with corporate sourcing groups to create a permanent capability that delivers sustainable outsourcing relationships. By working as a team, Alsbridge and corporate procurement groups cannot only ensure good, fair outsourcing deals, but also that they stay good and fair over the life of the relationship.”
To know more about how the procurement outsourcing groups can contribute in provider selection and ensure good, fair outsourcing deals, that stay good and fair over the life of the relationship; access the complete report How Procurement Professionals Can Deliver Extra Value in Outsourcing Relationships.