To assign managerial responsibility for all or select aspects of the procurement to benefit immediately from experienced procurement specialists support & expertise. This avoids the creation of an internal team (new resources) and the required time for that team to structure itself, its processes and its expertise.
Outsourced procurement is therefore an available solution for companies who :
1. Have no internal competencies but want to quickly benefits from procurement action (Cost reduction, suppliers and contract management...)
2. Have internal procurement expertise (department) but want to outsource activity on specific area(s) like indirect materials and services.
3. Consider Procurement as not a non strategic / core function and want to have it managed by a procurement service provider
4. Want to develop quickly a procurement function to deliver savings, with a willingness to internally develop this function in the mid term.