Procurement Outsourcing March 21, 2019, 4 p.m.

procurement outsourcing

The rise of business process outsourcing (BPO) has transformed the structure of many industries in the last two decades. Companies now routinely hand over activities, processes, or whole operations to third parties. 

In procurement, the outsourcing process has followed the same trajectory, albeit more slowly. The slow process can be attributed to low adoption of procurement technology and security concerns and training needs for suppliers.  Not many organizations want to allow suppliers to plug into their ERPs.

Areas of outsourcing

Outsourcing of strategic procurement activities, like supplier registration and selection, contract negotiation or specification management, category management, supplier performance, eProcurement, auction support, spend analysis, help desk and solution hosting. Outsourcing transactional procurement, like order processing or the management of invoices, is also relatively common.

SRMhub has fully automated these processes, and with our inhouse experts, and a database of suppliers for various categories, we got all ingredients needed to drive your cost down.


Outsourcing the above activities customers a host of benefits. By aggregating demand from multiple customers, we secure lower prices. In addition, large facilities in cost-efficient locations help them to reduce the cost of executing time-consuming activities like supplier assessment or processing RFQs. We provide our customers access to expertise, especially in categories where low spend makes it hard for customers to keep the right sourcing expertise in house. Finally, outsourcing smaller or less important categories to leaves in-house purchasers with more time to spend optimizing the procurement of strategically critical ones.

How to Prequalify Suppliers under SRMhub

Establishing a list of pre-qualified suppliers can add significant benefit to the procurement function from a number of perspectives such as cost optimisation, improved service levels, relationship building, timely procurement and risk mitigation.

 The steps are:

Step 1: Categorise all regularly purchased goods or services.

Step 2: Establish desired supplier qualities in line with your organizational goals.

Step 3: Convert information in steps 1 and 2 into electronic questionnaire on SRMhub.

Step 4: Publish in media and SRMhub to maximise the level of exposure of the process.

Step 5: Manage the process through proper communication, treat all participants equally.

Step 6: Evaluation and awarding will be SRMhub aided up to 80%.

Step 7: Close by sending automated email to successful and unsuccessful vendors.

Step 8: Seek quotations and tenders from prequalified suppliers through SRMhub

Step 9: Over time, use data accumulated in SRMhub to manage your risk, costs and suppliers.