The 4 Top Reasons You Should Outsource Your Product Sourcing Now

Learning Centre > The 4 Top Reasons You Should Outsource Your Product Sourcing Now

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We've seen a certain boom over the last 10 years, sensible organisations of all sizes are admitting the need to outsource procurement.

So why would companies choose to outsource their procurement and their product sourcing?The overarching reason we’d assume is that the organisation will achieve its overall strategic objectives better through outsourcing. The outsourced service will reduce costs and add direct value – “Bottom Line” benefits.So how?Let´s look at some of the main possibilities:

Expertise

Most companies don’t have the internal expertise or focus to source the best deal. Communicating around the globe can be daunting and very time-consuming without having the network of manufacturers and factories that expert procurement companies have. 'We have indirect spend or low priority categories that will never get the internal attention that they possibly deserve'. An outsourcer can bring that focus. What is currently a low-priority category for the client that may be taken on by a highly skilled outsourced professional who can drive better value/lower costs?

Technology and Process

Even the very large organisations don’t have the budget, expertise, and time to make their own investment work. An outsourcer with transactional management, longstanding contact/supplier chains, and other technologies already all set up and in place can reduce the costs and improve efficiency.

Costs

An outsourcer can run procurement cheaper than most companies could do internally. There would be very few companies, large and small, that wouldn’t benefit from savings on staff costs - particularly where there’s a large element of transactional processing where very little can be automated.

Control

If we asked an organisation to state the cost spent on sourcing a certain product, we’re unlikely to get an accurate answer. It’s very difficult to manage internal spend in a controlled and governed manner. An outsourcer will help to control internal budgets and keep spend focused on the important parts.

It is in fact a combination of the 'Focus' and 'Control' drivers that are at the top of the list. Control is a strange one – in theory, there’s no reason why an organisation couldn't drive compliance within an internal team. But in reality, no doubt it is the external contract that will force the organisation into appropriate behaviour.Our team at Innovolo we have been sourcing products from around the globe for the last 20 years and are experts in finding products that our clients aren’t able to source, or don’t have time to.We have developed strong bonds with factories all over the world and our staff and agents are constantly on the lookout for new products, partners, and processes. This means that we are confident that we will be able to source or manufacture most products that our clients request.

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We've seen a certain boom over the last 10 years, sensible organisations of all sizes are admitting the need to outsource procurement.

So why would companies choose to outsource their procurement and their product sourcing?The overarching reason we’d assume is that the organisation will achieve its overall strategic objectives better through outsourcing. The outsourced service will reduce costs and add direct value – “Bottom Line” benefits.So how?Let´s look at some of the main possibilities:

Expertise

Most companies don’t have the internal expertise or focus to source the best deal. Communicating around the globe can be daunting and very time-consuming without having the network of manufacturers and factories that expert procurement companies have. 'We have indirect spend or low priority categories that will never get the internal attention that they possibly deserve'. An outsourcer can bring that focus. What is currently a low-priority category for the client that may be taken on by a highly skilled outsourced professional who can drive better value/lower costs?

Technology and Process

Even the very large organisations don’t have the budget, expertise, and time to make their own investment work. An outsourcer with transactional management, longstanding contact/supplier chains, and other technologies already all set up and in place can reduce the costs and improve efficiency.

Costs

An outsourcer can run procurement cheaper than most companies could do internally. There would be very few companies, large and small, that wouldn’t benefit from savings on staff costs - particularly where there’s a large element of transactional processing where very little can be automated.

Control

If we asked an organisation to state the cost spent on sourcing a certain product, we’re unlikely to get an accurate answer. It’s very difficult to manage internal spend in a controlled and governed manner. An outsourcer will help to control internal budgets and keep spend focused on the important parts.

It is in fact a combination of the 'Focus' and 'Control' drivers that are at the top of the list. Control is a strange one – in theory, there’s no reason why an organisation couldn't drive compliance within an internal team. But in reality, no doubt it is the external contract that will force the organisation into appropriate behaviour.Our team at Innovolo we have been sourcing products from around the globe for the last 20 years and are experts in finding products that our clients aren’t able to source, or don’t have time to.We have developed strong bonds with factories all over the world and our staff and agents are constantly on the lookout for new products, partners, and processes. This means that we are confident that we will be able to source or manufacture most products that our clients request.

Key Takeways

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Farm+Stable is a client of Innovolo, a product development as a service provider offering R&D teams globally extra capacity, capability, and momentum in their product development and obsolescence management projects. As a company that specializes in the development and engineering of products for the agriculture and construction industries, Farm+Stable has benefited from Innovolo's expertise in helping to bring new products to market quickly and efficiently. In particular, Farm+Stable has been able to rely on Innovolo's team of experienced engineers to help with the design and development of a new line of products that are designed to be more durable and longer-lasting than previous models. With Innovolo's help, Farm+Stable has been able to bring these new products to market in a timely manner, and they have been well-received by customers. Thanks to Innovolo's innovative product development solutions, Farm+Stable has been able to stay ahead of the competition and continue to grow their business.
Innovolo is a product development as a service provider. It offers R&D teams globally extra capacity, capability, and momentum in their product development and obsolescence management projects. Its services are used by clients in a variety of industries, including automotive, aerospace, consumer electronics, and medical devices. One of its clients is Kawneer, a leading manufacturer of aluminum products for the architectural and construction industries. Kawneer has been using Innovolo's services to help develop new products and to manage the obsolescence of its existing products. Thanks to Innovolo, Kawneer has been able to speed up its product development cycle and to reduce its costs. As a result, Kawneer has been able to bring new products to market faster and to better meet the needs of its customers.

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