With the increased focus on cost and compliance, the procurement function has been elevated to a strategic component of value creation and a rich source of competitive advantage. To achieve this, rather than creating a world class procurement capability in-house, many companies have simply outsourced it. Procurement outsourcing is often undertaken to leverage economies of scale and improve the execution and control of underperforming or non-core tasks and poorly managed spend categories. In doing so companies can realize reduced supply and operational costs, improved compliance and enhanced performance and cycle times.
It is important to recognise that outsourcing the procurement function does not necessarily mean a complete transfer of control but more likely the utilisation of third-party services, which makes particular sense in economically complex countries in Sub-Saharan Africa. At a simple level procurement outsourcing can involve migration of infrastructure: people, technology, systems and supplier management. A step further and more complex procurement-related processes can involve, for example, transferring procure-to-pay (P2P) and/or requisitioning. At a higher level, value-added functions such as strategic sourcing can be transferred. Taken to its full conception, strategic responsibilities can be given over, which might include the formulation of business rules.
Global Sourcing by Acrealton
As the need to gain competitive edge tightens, companies that were once content to cultivate their local and national markets are now keen to globalise their operations and tap into new markets. Global sourcing, and specifically low-cost country sourcing, is a hot topic. Legitimized by early pioneers, offshore providers proved their value as alternative resources. Companies initially questioning why you would source from low-cost countries are now asking: why won’t you? As familiarity with the available opportunities has increased, so have more enlightened companies come to focus less on achieving incremental cost improvements and, instead, are evaluating all their capabilities to define a winning global sourcing strategy. They see global sourcing as a long-term strategy rather than a tactical solution for short-term goals.
Acrealton Limited (Nigeria) Procurement/Expediting Service Offering:
• Guaranteed procurement and supply chain on time, real time delivery.
• Price friendly to improve your bottom line.
• Pro-activity – international expediting
• Efficient and effective service delivery
• Regular follow ups and after sales services
• Appropriately trained and motivated personnel.