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Innovative & Gain Share Model

A Procurement Service Provider (PSP) is a business process outsourcing / consulting organization which helps enterprises in off loading non core activities of purchase departments to improve their efficiency and / or save cost associated with the same activities. PSP's have versatile staff and subject matter experts to assist client organization in a variety of tasks like data extraction from core systems (ERP), spend analysis, business intelligence, demand consolidation, demand benchmarking, strategic sourcing, contract management, supplier evaluation & negotiation, supplier information & performance management, as well as implementing best global practices.

Global enterprises use services of PSPs as an extended team members to help them in addressing maximum spend under coverage, deploy quality initiatives like Lean Six Sigma, reduce costs for strategic commodities / products / services, implement latest software / technologies, and streamline / outsource their procure-to-pay or source-to-pay processes. While doing the same the risks associated with this change management initiatives as well as rewards are shared by these enterprises with PSPs.

The need of Procurement Service Provider
  • Strategic Procurement process is defined as the process to purchase / buy commodities, goods and services with the highest level of scrutiny, quality requirements and the best landed cost through fair competitive bidding. In the current turbulent economic environment where each functional head is required to work under tight budgets and corporate team sizes shrinking day by day Procurement Service Providers are boon for Purchase Heads in any large organization.

  • Also as enterprises grow nationally / internationally, it becomes very costly and difficult to maintain domain expertise in every category of spend. Using a PSP avoids the cost of full time procurement resources for non-strategic commodities or for addressing cyclic requirements. A Procurement Service Provider can also used for data extraction from core systems (ERP), spend analysis, benchmarking of price for different commodities, for low cost country sourcing, to negotiate contracts, manage supplier performance and help organization in implementing global best practices.
  • Enterprises can expect cost reductions on an average between 10% and 20% by outsourcing management of their procurement processes or specific commodities.

How Do I Use a Pcura as a Procurement Service Provider?

Pcura will be happy to meet you to discuss how we may be of service to you. Keep in mind that you do not have to outsource your entire procurement function. We will be happy to assist you in selected spend categories. Pcura can work on a contingency basis as well. Over commercials consist of reasonable fees linked with the deliverables, major portion of which linked to results, which ensures a strong RoI for your investment.