LinkedIn Twitter
Obsessed with how companies manage, spend and save money, Jason writes about procurement, trade and supply chain issues @ Spend Matters. He has significant first hand experience developing and marketing technology and services products, has advised numerous companies on sourcing and related techniques as well as M&A pursuits.  In previous lives before tech, he was a management consultant and merchant banking analyst.

2 responses to “Friday Rant: Six Things Procurement Outsourcing Firms Are Hiding From You”

  1. vinay

    This is a very bright insight ,,and a must read for anyone and everyone related to procurement outsourcing

  2. Mayank Pincha

    I am a founder of a procurement outsourcing company and in business for the last 10 years in India. I am very happy to see your article. I thought of covering our perspective to your points mentioned in your article.
    1. We have 10 years of expertise in sourcing high value direct materials for the Construction Industry. It is only now that we are moving into Manufacturing sector.
    2. We are working for Indian companies, & hence there is no reliance on labour arbitrage for our revenue model.
    3. We have had not much reliance on process automation. Now we are having a workflow automation tool to ensure process clarity, status visibility etc.
    4. We do outsourcing for non-core spend, but before outsourcing, we optimize the spend on a “as is where is” basis. We advocate companies managing their own A & B category spend. We help them optimize this category.
    5. We don’t believe that ‘price leadership’ is sustainable. We assist clients with “supply risk management, & contract management.”
    6. Again, we focus on life cycle cost rather than price savings.