5 Reasons Organizations Outsource Procurement

Businesses may outsource procurement services for a wide range of reasons. Currently, supply chains are evolving into global networks, making procurement outsource an essential part of any successful business plan.

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Outsourcing allows businesses access to skilled procurement experts, which optimizes supply chain management. Efficient and economical, it also prevents overwhelming businesses with the expenses of an in-house procurement team.


Focus on Other Aspects of Your Business

Using procurement outsource, businesses can better focus on other important aspects of their company, such as:

  • Increasing market share
  • Growing revenue
  • Increasing customer base 
  • Effectively managing customer orders, delivery logistics, and material replenishing
  • Implementing new strategies for growth 
  • Developing new and better products and services 


Reduce Labor and Operation Costs

If growing your business isn’t enough of a reason for procurement outsource, cost savings is another strong incentive for most companies.

In regard to labor, when outsourcing, you won’t be responsible for salaries, benefits, or physical workspace that are all necessary for internal hiring. And operationally, you won’t have to get  in-house staff members up to speed on procurement, or find the necessary material resources.

Instead, outsourcing allows you to access already-trained labor as well as needed resources, equipment, and space. It’s often far more cost-effective to outsource procurement activities than to handle them in-house, particularly if you are outsourcing to an overseas partner.


Saving Time and Reducing Effort

Along with saving on labor and operating costs, outsourcing also allows you to save time. It can be an enormous time-drain just to send and reply to emails and texts, handle bookkeeping, and maintain procurement records.

And, reducing the effort it takes to handle procurement processes yourself will improve your staff’s productivity and motivate them to work on other projects with important, longer-term results.


Reduce Risk

Procurement outsourcing will also lessen your operational risk, as you’ll be sharing procurement risks with your outsource partner. You’ll find greater efficiency is one of the outcomes of reduced risk, as you’ll be able to focus on managing other business challenges, and using staff resources more wisely, preventing the risk of team burn-out.

The expertise outsourcing partners provide is also valuable, especially if they are experienced in your operational region. The knowledge that outside procurement resources brings to the table can boost your operational productivity.

And, along with improving efficiency and providing greater knowledge, your business will also be better able to control lead time, quality and compliance, and your inventory level.

You’ll be able to identify risk areas, and take the best steps to proactively reduce risk impact.

It’s also easier to find and put in place both back-up suppliers and stock.



In the global marketplace, flexibility and agility are both key to managing fluctuations in market requirements and your tactical and strategic positioning. If you’re focusing on procurement on your own, your business may be taking too much time away from handling core competencies and limit your ability to efficiently adapt in an often rapidly changing business environment.

An outside procurement partner means you’ll be far more able to focus on customer satisfaction, by reducing the possibility of inefficient procurement and staffing, and instead creating a supply chain that operates smoothly.

Procurement outsource will help your company to better adapt to changing conditions as well as customer preference and fluctuating demand.


Benefit from Outsourcing Procurement at DXL Enterprises

Today, businesses are constantly looking for the ability to evolve as procurement needs and supply chain requirements fluctuate, and at the availability of successful resources. With that in mind, there’s no question that outsourcing procurement is a vital necessity for business success, improving customer satisfaction and reducing operational costs.

If you’d like to know more about the ways your company can benefit from outsourcing procurement, DXL Enterprises is ready to help. We know how procurement outsourcing works, and we have the global access you need to assist your business through this process.


Call our skilled professionals at DXL Enterprises today, at (201) 891-8718.