Procurement Service Provider is the Catalyst for Indian Business Growth

Emmanuel Christi Das, Special EditorManagement of Spend, Support of Operations, and Supply Risk Management are the 3 important procurement function dimensions that an ideal procurement service provider should promise you. Every business’s goal is to generate profits. Every business, in theory, seeks to optimize its resources, thereby keeping costs at a minimum, which, in turn, leads to higher profit. Businesses, especially large corporations, invest significantly in supply chain management, or SCM, wherein the business will implement a strategy that streamlines activity during the procurement process so that the supply chain is as efficient and economical as possible.

While beneficial, a basic SCM strategy does not see the supply chain’s “big picture.” Imagine that a business, in addition to optimizing costs through a basic SCM, can use analytical software to determine the best overall strategy to optimize

profits. A business can accomplish this through strategic sourcing, which provides a business with a bird’s eye view of the supply chain when managing its procurement process. An eProcument or any procurement service provider for that matter, can take a business places in the long run.

It is more important than ever for manufacturers to ask themselves: Does my procurement team employ best-in-class practices, sophisticated tools with the right talent, and the necessary formal and informal cross-functional linkages?

Some 50 to 90 percent of the companies that answer this question will respond “no.” While this realization is a good indication of readiness for change, these organizations should realize that, not only are they missing an opportunity today, but they will not be ready for the challenges the next decade will bring.

McKinsey & Company research has confirmed that procurement pays: Companies with high-performing procurement functions consistently outperform their rivals on a range of financial indicators, and the best companies are building advanced talent management strategies into the very heart of their procurement organizations. Moreover, procurement will play a key role in helping companies cope with the new challenges and opportunities of our increasingly dynamic global economy.

Therefore, we doing our bit for businesses across the peninsula, are bringing the best procurement service providers in India. Indian businesses need to make the best of this opportunity and narrow down on their choices to help streamline their operations.

Do let us know what you think.