As global competition intensifies, the ‘business of procurement’ continues to grow in terms of its strategic importance to organisations. A key factor in the procurement profession’s evolution is that a typical organisation spends 50% of its revenue on procured goods and services and any reduction in that 50% of spend has a direct impact in improving bottom-line profitability.
However, the elevated status of the procurement function is consistently being challenged by increasing expectations from stakeholders needing access to a highly competent procurement service that must consistently deliver sustainable cost reduction, improve productivity and mitigate a growing plethora of supply chain risks. This is where Optimum's fully outsourced and managed procurement services come in.
Unlock Savings and Create New Value Streams
Central to embedding a highly professional procurement capability is the use of procurement outsourcing as a key lever in transforming purchasing and supply performance to unlock significant savings and new value streams. Increasingly, procurement leaders are looking for external help, principally to buy their non-core services from an expert procurement service provider like Optimum, who offer expert domain knowledge and vendor aggregation opportunities.
An Effective Category Management Approach That Delivers Results
Our category management expertise leads to faster and more sustainable benefits than those normally achieved by internal resources, which are free to focus on core activities. We provide deep domain knowledge in under-performing spend categories, combined with significant experience in establishing and enforcing integrated procurement processes across the client’s organisation.
Outsourcing to Optimum frequently leads to a dramatic improvement in procurement performance without clients having to invest in fixed cost resources or infrastructure. Savings by category are typically 10% to 40% and sometimes higher.
The advantages of procurement outsourcing with Optimum
Leveraging our economies of scale to achieve improved pricing and faster cost reduction is a prerequisite in any successful procurement outsourcing arrangement. However, labour arbitrage benefits are also frequently achieved combined with key staff being allowed to re-focus on core activities. Beyond this, further strategic benefits materialise as we provide clients with the specialist category skills and domain knowledge that consistently outperforms internal resources, which may not exist in the first place, particularly in ungoverned high expenditure areas like tail spend.
Frequently, we work within a co-sourcing arrangement that ‘fills the gaps’, creating the optimal mix of internal and external resources for clients, maximising spend coverage, compliance and service performance.
Our category expertise delivers detailed market and supplier intelligence, driving more objective sourcing decisions that we ensure through our ‘service review board’ processes are fully aligned to the executive leadership and strategic goals of the organisation.
Service level performance is central to our value proposition and our engagement model ensures we operate against a robust and formal set of service criteria. This ensures a consistent approach to operational delivery and a focus on fully understanding the often very different needs of key stakeholders.
Outsourcing That's Driven By Technology
Outsourcing using our Optimum SourcePlus technology platform provides crucial visibility to clients on absolute expenditure levels to a granular level. Maverick buying is a common problem meaning spend is frequently invisible or at best underestimated. The application of professional procurement expertise with a class-leading technology toolkit ensures procurement automation is achieved, fragmented buying activity is removed and compliance to approved vendors and contracts is restored.
Our Key Supplier Relationships Drive Even Better Value
Our focus on supplier relationship management drives better engagement and collaboration with key vendors securing incremental value opportunities and assurance of supply in business critical strategic categories.Across more than 200 categories of spend, key market vendors see us a as a primary route to market for their goods and services, meaning we already have a high number of mature senior level vendor relationships in place. This allows us to mobilise rapidly and offer our clients significant cost and service benefits that offers them a high return on investment and compelling value proposition.
We're an Independently Recognised Procurement Outsourcing ProviderOptimum Procurement has been positioned as a 'Major Contender' by Everest in their new report, 'Procurement Outsourcing (PO) Service Provider Landscape with PEAK Matrix™ Assessment 2016'. Following three years of recognition as an ‘Emerging Player’ in prior PEAK Matrix™ assessments, Optimum has progressed to being designated a ‘Major Contender’ in the latest report.
As a leading procurement service provider, we offer an enterprising approach to procurement outsourcing that is focused on delivering a significant return on investment to clients. We currently manage more than 200 different categories of expenditure, being responsible for over $1Bn (£600m) of annualised client spend across multiple sectors and geographies, as well as offering comprehensive procurement training courses. We also operate specialist procurement outsourcing service lines in fleet management and energy procurement, serving over 200 customers from SMEs to leading retailers.
Get in Touch
24th May 17 | Optimum News
5th May 17 | Optimum News