82% of procurement leaders admit they're not managing their indirect spending well—leaving potential cost savings untapped. For IT teams this means that large amounts of their budgets might be untracked or misspent.
In addition, IT equipment sourced from several global partners poses complex international tax regulations, import tariffs, and logistical challenges.
What's more, the 2023 Research Insights for CFOs report highlighted that 80% of proposal requests still occur via email or spreadsheet.
This, again, points to a lack of digitalization. This adds to inefficiency and wastes resources and valuable time.
In this article, we discuss the challenges of international procurement, factors to consider in international procurement, and finally, procurement strategies for international markets (like procurement automation). Let’s dive in and understand this better!
International Procurement refers to the strategic method of sourcing and purchasing goods and services from foreign markets. It involves assessing quality, compliance, and delivery timelines while aiming for cost-effectiveness.
For example, an IT manager may procure laptops for a distributed team spanning several nations. Various manufacturers may be explored, including:
When the IT equipment arrives, the team will manage its installation and integration into the corporate network, handle any return issues, and ensure compliance with warranties and support clauses.
The responsibilities don't end once the equipment has been integrated and installed, though. IT equipment requires regular maintenance and updates to run optimally—tasks often fall on the IT manager's plate as well.
In addition, they must also field any questions or issues that come up regarding usage, troubleshooting, or warranties. Let’s take a closer look at the challenges of international procurement!