Procurement Outsourcing and Co-Sourcing
MANAGED SERVICE SOLUTIONS
It’s not difficult to see how a single, end-to-end procurement solution would strengthen business operations. A single journey, all the way from initial product or service sourcing through to invoice payments and ongoing supplier management. Cost savings would be achieved and process efficiencies would clearly add to the overall business value. So it’s not the vision that is the challenge. The difficulty has always been making it happen.
Each stage of the procurement cycle involves multiple stakeholders, variable processes, questionable practices, unregulated pricing and almost limitless administration. Any value initially attached to a transaction is systematically leached from the business as the process grinds slowly and painfully onwards to an eventual but unsatisfying conclusion. It’s hardly the thing dreams are made of.
In any other part of a commercial enterprise, systemic inefficiency would be penalized. Business architects would operate, or amputate. But the procurement cycle is mission-critical. However complex the structures may be, they remain essential to the running of the organization. And so the inefficiencies continue. Fractured but not broken. Fragmented but not split.
It takes a rare and unique blend of people, technology and process to tackle the complexities of the procurement outsourcing market from end-to-end. Fortunately for our customers and their businesses, Xchanging Procurement has all the talent, technology and processes they’ll ever need. Our Source-to-Pay, Source-to-Contract and Co-Sourcing solutions are designed and tailored to best match each of our customers’ environments.
How We Help
As the business of business accelerates, so does the process of processing. Time is money. Speed in delivering results is power. From initial supplier contracts to final accounts payable, Xchanging Procurement accelerates the entire buying transaction – across markets, across companies, across borders. The faster and more efficiently a business can process supply chain intelligence and transactions, the more competitive it can become. If it can connect the transaction to the finance department, competitive advantage can only increase.
Competitive advantage is driven through MM4, the integrated technology platform from Xchanging Procurement. By developing a single environment for Procurement Outsourcing, Xchanging Procurement helps synchronize disparate elements of the procurement cycle. Market intelligence and insight are inextricably connected to accounts payable and accounts receivable. We create a single view of the buying cycle so that stakeholders across the enterprise and supply chain are visible, connected, streamlined, and working together.
Togetherness is a word not often attributed to procurement, but Xchanging’s global expertise and proven ability to synchronize sourcing and business objectives creates a cycle of improvement that directly benefits the customer organization again and again.
What We Do
Procurement Outsourcing requires collaboration not just between Xchanging and the customer, but with all associated internal/external stakeholders. Our customers have learned to rely on Xchanging Procurement’s high-touch service delivery and expertise across:
- Software as a Service – SaaS
- Procurement as a Service – PaaS
- Tail-end Spend Management
- Low Cost Country Sourcing
- Category & Market Insights
Xchanging Procurement helps support customer needs from the outset, helping define requirements, proposing solutions, implementing changes and managing the change process. At the development stages, we advise on category strategy and provide market insights. At sourcing stages we negotiate contracts for our clients and execute against them. We implement supply chain contracts and maintain ongoing supplier performance management. We handle financial operations including purchase and sales invoicing administration across countries, languages and currencies.
We don’t believe that procurement has to frustrate business. Xchanging Procurement enables business, releasing trapped and hidden profits throughout the enterprise. Procurement Outsourcing creates value in all areas of a customer’s business including: tracked savings to the bottom line, cashflow improvements, reduced processing errors, streamlined bureaucracy, improved supplier compliance, improved user experience, enhanced service levels and process, as well as product and service innovation. Under fully implemented Procurement Outsourcing contracts, Xchanging Procurement delivers incremental value of 5-10% beyond standalone sourcing or Procure-to-Pay optimization. We can tell you about service improvements, risk management and improved customer satisfaction, but when a 10% business improvement is not just possible, but proven, the difficulty is no longer making it happen, it’s how fast you can make it happen.