The Process Design Of In-direct Procurement Outsourcing Service For Ⅰ Company

This article documents the practice of in-direct procurement outsourcing of I company, its process design and execution, in response to the challenges faced by the industry on increasingly stringent compliance requirement, and pressure on cost-saving to enhance competitiveness.In the globally integrated business world, companies are facing ever increasing challenges from two aspects- a balance of cost reduction and qualified global supply to drive competitiveness, and a more and more stringent regulatory and compliance environment. With no surprise, procurement has become an increasingly critical corporate function in response to the cost and compliance challenges. Traditionally companies tend to rely on external consulting expertise to help drive process improvement. While in the much faster paced global economy, procurement outsourcing has been recognized as a more relevant transformation approach, and adopted by more global enterprises.Procurement outsourcing provides companies with a more solid ground for procurement re-engineering, with cutting edge capabilities from leading firm, like I company, including the process design, critical sourcing skill, established sourcing strategy, and a more leveraged supplier base. Like what is being analyzed in this article, the author is trying to unveil the critical success factors of I company that is attracting companies to adopt the procurement outsourcing model in the indirect procurement domain, and how I company is applying its established procurement vision to help other companies succeed.