Procurement outsourcing

A Case Study On Outsourcing Procurement Solution For Our Client

Procurement is important to the success of a product-based business. It would be difficult to create all of your own parts and materials. Outsourced procurement teams enable businesses to immediately benefit from the support and expertise of experienced procurement outsourcing specialists. This avoids the formation of a new internal team as well as the time required for that team to structure itself, its processes and its expertise.

Key Points

1. By working with a third-party provider, you gain immediate access to a team of highly qualified customer service representatives.

2. The procurement outsourcing provider interacts with your customers by utilizing cutting-edge technology and techniques.

3. The main reason businesses choose procurement outsourcing services  is to save time and money.

The global procurement outsourcing market is expected to grow by 8.5 percent by the end of 2028, making it a viable option for even more areas of your business.

Customer: Fortune 200 consumer goods manufacturer.

Challenge: The in-house procurement department was largely fragmented and underutilized, working within category warehouses. There was no agreement on service goals. This resulted in more than 30% of POs remaining open for more than 90 days, 60% of blocked invoices being cleared in seven or fewer days, and 25% of supplier deliveries being more than 30 days late. Furthermore, procurement wages were out of step with market rates.


BPO Bangladesh has extensive experience in full-scale procurement outsourcing to ensure resource rationalization, including expertise, cash flows, and management bandwidth at the CPO’s disposal. BPO’s  procurement Outsourcing services have an established track record of reducing costs and improving operational efficiency, from Spend Analysis and contract management to regulatory and vendor performance tracking.

As part of the process streamlining, BPO assumed full transaction responsibilities in a 6-week transition period. The product categories involved ranged from high volume, low touch Supplier to low volume, high touch marketing services. BPO  established a multi-skilled team, customized process maps, and standard operating procedures for each category.

The team creates strong SLAs and reporting dashboards. With a strong emphasis on continuous process improvement existing performance levels were baselined and compared to industry best in class benchmark.


The method realized operational efficiencies across categories by utilizing flexible teams. Furthermore it significantly improved performance when measured against specific targets. Less than 10% OF PEOs left open after 90 days and 90 percent of block invoices were cleared within 7 days.

The team was also able to contribute to the improvement of on time in full matrices only 6% of deliveries taking more than 30 days. Workflows were automated using a p2p tool and vendor performance was tracked using scorecards and join process improvements.


Chief procurement officers are expected to make procurement processes more effective and to reduce spend significantly in order to drive competitive edge and measurable shareholder value. Procurement Outsourcing is gaining popularity among businesses as a tool for driving these efficiencies. Outsourcing auxiliary processes also ensures that the in-house company has enough resources to focus on more strategic issues.

Checklist Of Procurement Outsourcing Benefits

Procurement Outsourcing benifit

To summarize, outsourcing procurement will assist your business achieve the following benefits:

1. Reduce the cost of goods and the cost of overhead.

2. Concentrate on core competencies to gain a larger market share.

3. Improve th eorder execution process.

4. Improve your procurement functions’ long-term stability and sustainability.

5. Reduce the need for cyclical personnel.

6. Improve your procurement functions’ long-term stability and sustainability.

Contact Us Today

You can optimize your business operations and significantly free up time for your employees by procurement outsourcing services. We can also help you in gaining direct cost saving and better market use of your current budget. You can improve your bottom line by utilizing our expert services. 

To fully benefit from our purchasing capabilities, ensure that you are aware of the procurement segments that you wish to improve. If you want to completely outsource the procurement process, we can also provide end-to-end outsourcing.

Please contact us if you want to learn more about procurement outsourcing with BPO Bangladesh. Our expert team is ready to take your business to the next level..