|Who we are
Budgetsource is a Procurement Service Provider (PSP), A Procurement Service Provider, or PSP, is a third party organization or consultant which is used to supplement internal procurement departments. PSP's have their own staffing which assist in a variety of tasks for their clients. These tasks include: strategic planning, implementing best practices, supplier rationalization, supplier collaboration, strategic sourcing and negotiation.
||Why use a Procurement Service Provider?
At most organizations, it is very expensive and difficult to maintain domain expertise in every category of spend. Using a PSP avoids the burdens of procurement infrastructure for non-strategic categories. A Procurement Service Provider can provide a rapid analysis of an organization's spend and implement changes, negotiate with suppliers, and use proven industry best practices. A good PSP will become an extension of the organization's existing procurement resources, in a non-obtrusive fashion.
In a recent article titled "Strategic Sourcing in the Mid-Market Benchmark: The Echo Boom in Supply Management", the Aberdeen Research Group wrote about potential new approaches of Mid-Market company's sourcing initiatives due to findings showing that they currently have mostly fragmented or limited sourcing efforts. Specifically, to remain competitive, Mid-Market companies should have "Increased reliance on third-party consultants to help define strategic sourcing process and train internal employees on commodity costing models, sourcing automation tactics, and category and supply market assessments."
| How do I use a Procurement Service Provider?
The answer is: it is up to you. Some organizations choose to completely outsource their procurement departments to a dedicated procurement company. However, this is not possible for most customers due to the complexity of their business and the goods/services that are purchased to support it.
Every organization is unique, and there is no single answer that works for any organization. Procurement Service Providers can be used in any of the following scenarios: replace your current procurement department, supplement your current resources in strategic or non-strategic product areas, provide electronic tools to make your procurement department more efficient, or simply as consultants for implementing best practices. Keep in mind that you do not have to outsource your entire procurement network, it is usually best to select a target area, and gain top-level support within your organization before contracting with a Procurement Service Provider.
| How Do I Decide Which Procurement Service Provider Is Right For Me?
There are a large variety of Procurement Service Providers in the market, and new companies are moving into the market every day. The choices and offerings from Procurement Service Providers can be overwhelming.