13 Dec A winning combination: 7 reasons to outsource your procurement and fulfillment
If a global ‘shutdown’ has taught us anything, it’s that being able to adapt – quickly – is essential. Not only in your business – but throughout your entire supply chain.
For quick-service restaurants, ecommerce companies, and product-based businesses, contracting out your procurement and fulfillment functions is a big decision. Questions will arise around costs and loss of control.
But when done right with a trusted third-party, outsourcing will improve efficiencies. And most importantly? Your bottom line.
Why outsource your procurement?
The cost of goods and materials is rising. Staff cutbacks are placing more pressure on employees to multitask. And credit is harder to come by. Against this backdrop, companies are looking for innovative solutions – and procurement outsourcing is one of them.
Instead of having to build relationships, locate the right manufacturer, negotiate prices and oversee quality control, the way to procure with ease is to outsource.
Here’s why.
1. Leverage your most limited resource: time
Many businesses balk at the idea of outsourcing, with the assumption it’ll cost a kidney.
But there’s another precious commodity not to be overlooked, and it’s the only one you can’t get back – time. And we all know in business, time is money.
So may we suggest a reframe?
Instead of fearing the finances, look at outsourcing like you’re gaining a highly skilled full-time employee. One who can do the job far more effectively and efficiently.
Because sure – you could put procurement on your current teams’ shoulders. But this often results in under-skilled and overworked employees who feel pulled in too many directions.
And with scattered focus comes slower forward motion – and higher rates of error
2. Reduce your costs – from multiple angles
As a business, you’re always looking to reduce your supply chain costs.
Yet do you know how much your goods actually cost?
Between the seemingly never-ending variables and the ever-changing global landscape, this number is often a mere projection – and a poor one at that.
Outsourcing procurement helps to balance these fluctuations.
By working with an external provider, you centralise your procurement costs. This gives you a structured set of numbers to work with. Not a ballpark figure that seems to change daily along with the global economy.
3. Relish the highest levels of quality control
Two of procurement’s biggest frustrations? Ensuring your goods arrive on time – and to the standard you expect.
Fortunately, a quality procurement expert tackles these headaches for you – before they become migraines.
Along with their pre-established relationships with suppliers and goodwill with manufacturers, third-party procurement companies are skilled negotiators.
Plus, they have an intimate understanding of local and international standards. And a water-tight knowledge of the regulations. This ensures your business meets all the necessary requirements and gets your product safely from the manufacturing facility to the airport or docks.
Why outsource your fulfillment?
So, your product’s arrived in the country. Now what? How does it get to where it needs to go – and when?
Fulfillment has many moving parts. It includes shipping, tracking, warehousing, picking and packing, delivery and notifying. All which come with large overheads if you don’t manage them correctly.
Outsourcing your fulfillment can help – here’s why.
4. Increase flexibility – and cash flow
First, sit back and consider the costs of setting up your fulfillment infrastructure yourself. From hiring the full-time staff needed to run the process. To renting the space to store your stock.
Sound expensive? It is.
But the real benefit to outsourcing your fulfillment is the ability to increase and decrease warehousing space as you see fit.
Perhaps you need to place a large order to ensure your materials are ready for use. Or maybe it’s a smarter move to down-scale and sit out the volatility.
Either way, if you’re managing all the costs and logistics yourself, you’ll be slower to adjust – and further out of pocket.
5. Enjoy access to more solutions
You don’t know what you don’t know – and most business owners aren’t experts in the logistics game.
Fortunately, you don’t have to be.
By partnering with a third-party provider, you’ll open your company up to a whole new realm of possibilities and business solutions.
From cloud-based stock management systems that track your product globally to drama-free deliveries with carrier brokerage and management; you’ll get access to exactly what your business needs – when it needs it.
6. Find time to grow your business
To continue to blossom and prosper as a company, you can’t be stuck in the weeds.
Ideally, you choose management, employees and contractors you can trust – so you don’t have to micro-manage their tasks.
Logistics is one of these areas. If mismanaged, it’ll bleed your bank balance and passion for your business dry.
But partnering with experts on the international supply-chain circuit will free you up to focus on other day-to-day operations. On the stuff you really want to be doing. And on those long-term, big-picture goals.
7. Enjoy end-to-end excellence with Brenburg
We’ve given you three reasons to outsource both procurement and distribution. So why should you contract out both – from the same provider?
Because, by engaging one provider to oversee your entire supply-chain, you’ll enjoy a smoother ride from start to finish.
Nothing gets lost in translation. No-one tries to pass the buck. And your business benefits from a clean, streamlined and professionally managed process. From the first enquiry to delivery to your door.
It’s global logistics – made easy.