Procurement companies are vital to the operations of many businesses around the world. Whether a procurement company secures goods or services for their contracted clients, these services are often what help keep businesses and supply chains running smoothly.
Below we’ll take a look at the different services a procurement company can provide for companies.
What Can A Procurement Company Provide?
In general, you can break down procurement into three main categories. These include:
- Service procurement
- Direct procurement
- Indirect procurement
This type of procurement activity involves the procurement company working to facilitate the business operations of a company, but not necessarily the raw materials or other items needed for production.
This includes services like providing temporary staffing or bringing in vendors to help the company deal with fluctuating demand. This can also include the procuring of IT services such as cybersecurity and software support or leasing.
Direct procurement involves the core of what a company produces. So procurement in this sense would mean obtaining the raw materials or production equipment needed so the company can continue producing their product without interruption.
This can involve dealing directly with the company’s production executives as well as direct involvement with suppliers and vendors.
Indirect procurement is the procurement of goods required by a company that supports its operation, yet these goods are not directly involved in the end product.
Things like safety equipment or PPE, office infrastructure items, and other support items will fall into this category.
Is Procurement The Same As Purchasing?
No. In general, the procurement process deals with the tactics and strategy to obtain goods or services via the most efficient process possible given the requirements present.
When using a procurement company, they leverage their expertise when it comes to sourcing and negotiating with vendors. This expertise allows them to often procure goods and services faster and more cost-effectively than if the company did so on their own.
Can A Procurement Company Help With Supply Chain Issues?
Yes. One of the main benefits of procurement companies is their experience when it comes to dealing with tight supplies or difficult sourcing environments.
A quality procurement company has relationships with vendors and suppliers around the world. These crucial relationships built over the years can often mean the difference between securing items quickly or having to wait while supplies are replenished.
Dealing with supply chain issues is one of the biggest concerns in today’s difficult business environment. A procurement company is one of your strongest allies as you navigate this new supply-constrained landscape.
How To Choose The Right Procurement Company?
Choosing the right procurement company is key to enjoying the benefits they provide for your business.
At DXL Enterprises, we have over 40 years of experience in providing the best procurement services for our clients. In those 40 years, we’ve built relationships around the world that allow us to quickly procure goods and raw materials while other procurement companies are still searching.
If your company needs the most trusted and reliable procurement services available, please call us today +1 201-891-8718 or visit our website so we can start working for you.