PROCUREMENT
These benefits only accrue , however , if your team carefully defines the scope of the operation . When you try to hit the bull ’ s- eye on a dartboard , you aim directly at the centre . It takes a certain angle , force , and skill . Likewise , procurement teams must figure out what and how much to outsource . Outsourcing still requires spending , and teams will want to get good data before they sign a final contract . In addition , staff members should be on board with the rationale and objectives of the outsourcing project — otherwise , your darts will miss their target .
How To Successfully Outsource Procurement According to McKinsey , teams should focus on three main steps .
1 | Determine which categories to outsource . Focus on non-core business areas . These are any services that support your core product , such as freight and shipping , facilities , and IT infrastructure . 2 | Select the right metrics . Build supplier scorecards , in which your team decides upon two to three key criteria such as low unit prices , supply chain resilience , and quality of product . 3 | Partner with the appropriate people . Ask potential firms questions to assess their domain expertise ; diversify your search to take in a variety of global organisations , and consider their technical skills — even if you ’ re not hiring the vendor for IT .
If these focus areas seem too broad , Deloitte recommends a phase-by-phase process .
40 August 2021