Procurement Outsourcing: A Comprehensive Guide for IT Teams

Spreadsheets, vendor negotiations, budget balancing, and managing supply chain issues— these are just the tip of the iceberg when it comes to procurement headaches for IT teams.

Outsourcing IT equipment like laptops and peripherals can mean the difference between keeping your team productive and facing massive delays.

Engaging with numerous vendors, ensuring compatibility, and keeping costs in check are no small feats. More than often, these efforts can lead to oversights, inefficiencies, and even increased expenses. Outsourcing procurement processes to specialized platforms eliminates these issues.

Per a Deloitte survey, 57% of businesses witnessed improvements in cost savings and process efficiencies after outsourcing procurement functions.

In this article, we define the core aspects of procurement outsourcing, discuss its many benefits, and provide a step-by-step approach to seamlessly integrate this strategy into your IT operations.

What is Procurement Outsourcing?

Think of procurement outsourcing as hiring an external expert to handle all or part of your purchasing processes.

For instance, imagine your IT department needs new laptops. Traditionally, your team would research various models, negotiate prices with vendors, and manage delivery schedules.

But with procurement outsourcing, you can hand over these responsibilities to a specialized firm. They'll take care of the market research, vendor negotiations, and logistics so that you get the best deals without lifting a finger.

This streamlined approach saves time and resources for your core team, letting them focus on higher-priority tasks like network security or system upgrades.

This also lowers the risk associated with human error and vendor management complexities.

Benefits of Procurement Outsourcing

Here are 6 benefits of procurement outsourcing with examples:

Cost Savings

Switching to procurement outsourcing can really make a difference in your budget.

Imagine needing 50 high-performance workstations for a big project. Purchasing them individually could rack up costs, but an outsourced procurement partner can leverage bulk buying power and negotiate better rates.

It feels like getting a friends-and-family discount on everything. Plus, you avoid hidden costs like storage and shipping. You’re just paying for what you need, freeing up capital for other critical projects.

You won't have to worry about juggling invoices or mid-project pricing spikes, either.

Just think about how much smoother your operations could run without these hurdles.

Procuring through an outsourced partner not only brings down costs but also removes a significant administrative burden.

This means that your IT team can divert their focus from the intricacies of procurement and dedicate more energy to innovations that drive your business forward. Less scrambling for supplies, more strategic growth—it's a win-win!

Supplier Management

Let’s say you urgently need 50 laptops, but finding reliable suppliers at a moment's notice feels impossible.

With procurement outsourcing, you can tap into an established network of vetted suppliers instantly.

Picture this: while you focus on wrapping up that critical software rollout, your partner ensures those laptops are ready to go without any hiccups.

You get top-notch equipment without the usual headaches, and your team is free to tackle other pressing issues. It's as smooth as it gets.

Time efficiency

Hiring spree? Your IT department might find itself overwhelmed with mountains of paperwork and stress when trying to source dozens of new monitors in a pinch.

Thanks to procurement outsourcing, instead of being buried in admin tasks and waiting on suppliers back and forth, your team gets those monitors while you wrap up important projects.

Everyone's productivity boosts and deadlines become a breeze.

Risk Mitigation

Ever gotten faulty equipment in a rush order?

With a procurement partner, you won't have to deal with that stress.

Let's say you're gearing up for a major event, and the last thing you need is defective hardware tripping you up.

Professional outsourcing ensures each piece of equipment meets quality checks and compliance standards before it even reaches you.

You get peace of mind, knowing that delivery will work perfectly out-of-the-box, keeping your projects glitch-free and on schedule.

Procurement Agility

Take, for instance, a sudden software update that demands immediate hardware upgrades. With procurement outsourcing, you can acquire needed equipment without disrupting your team's workflow.

The outsourced team can quickly source, purchase, and ship out everything, ensuring a seamless transition.

Your team stays on track with strategic objectives rather than scrambling for last-minute solutions, embodying a level of responsiveness that turns potential roadblocks into stress-free adjustments.

Procurement Automation

Platforms like Workwize take procurement outsourcing a notch higher.

They automate the entire procurement process, from placing orders to tracking deliveries. Imagine effortlessly ordering 100 new keyboards with just a few clicks.

No back-and-forth emails or pings; everything is streamlined. Admin workload drops instantly, and you can dedicate time to more pressing tasks. With real-time updates via Slack, email, or WhatsApp, you always know the status of your orders.

There is no need to worry about the intricacies of vendor negotiations or logistics management—Workwize handles it all. Here’s how Workwize helps you:

• Workwize provides global deliveries within 5-7 days, simplifying logistics and international shipping (local warehouses in 72+ countries).
• Ship orders worldwide to keep sufficient stock or direct them to different addresses—like remote offices, HQ, or employees’ homes.
• Maintain stock internationally and sell off old equipment.
• Customized self-service portal to empower new hires.
• Choose from our broad product catalog such as IT tools and office essentials.
• Instantaneous device enrollment into your MDM.
• Access all these by buying, renting, or leasing.
• Unified overview of all assets for simplified administration.

How do you get started with procurement outsourcing?

In this section, we'll walk you through the initial steps to engage with a procurement outsourcing partner. Here's what you need to consider:

1. Understand Your Needs: Compile a detailed list of recurring purchases and one-off needs your company has. For example, do you forsee you foresee bulk orders for seasonal projects or sporadic replacements due to wear and tear?
2. Think about everything—from office furniture to laptops, software licenses to ergonomic accessories. If you think you will be on a hiring spree soon, include onboarding kits.
3. Research Providers: Take the time to explore and compare different procurement outsourcing companies. Look into their specialties and customer reviews.
4. Request Demos: Don't hesitate to request a demo of their services. Seeing how their system works live can help ensure it aligns with your needs.
5. Evaluate Costs: Analyze the pricing structures for various providers. Consider not only the direct costs but also potential long-term savings.
6. Check Compatibility: Ensure the procurement partner's tools integrate well with your existing systems. Look out for compatibility with your financial software, inventory management systems, and communication platforms to avoid future headaches.
7. Define Service Levels: Outline clear service level agreements (SLAs) that specify delivery times, quality expectations, and support availability.
8. Continuous Monitoring: Set up a system for regular performance reviews of the outsourced procurement service.
9. Alternative Plans: Keep a backup strategy for critical failures to ensure uninterrupted operations.
10. Role Clarification: Communicate internally across departments to define roles and expectations clearly. Ensure everyone is aware of what to expect and establish points of contact for smooth coordination.
11. Test Small Projects First: Before fully diving in, start with a smaller project to gauge the efficiency and reliability of your procurement partner.

Automate Your Procurement Outsourcing With Workwize

Are you looking for a centralized, zero-touch platform to streamline procurement, especially for your global IT hardware and equipment? Workwize could be just the one for you!

Apart from procurement, Workwize also automates deployment, management, IT asset retrievals, and IT hardware disposal. Onboarding and offboarding employees becomes a breeze with Workwize.

Book a demo today to learn more about how Workwize can help you!