A Procurement Services Provider (PSP) is a third party organization or consultancy which is used to supplement internal procurement departments.  Procurement outsourcing is the transfer of specified key procurement activities relating to sourcing and supplier management to a third party  to reduce overall costs or maybe to tighten the company’s focus on its core competencies.These tasks are based on the needs of the client organization, but may range from strategic sourcing, benchmarking, supplier identification to entire Procurement Transformation.

Procurement in most businesses is by far the largest Supply Chain cost. Particularly in the current economic environment, effective and efficient procurement across your business is vital.

Outsourced Procurement Services consultants provide a wide range of Strategic Sourcing and Procurement consulting services, as illustrated below:

• Assessment of current procurement spend
• Procurement risk assessment
• Assessment of the supply market
• Procurement structure, process and technology evaluation
• Procurement performance measurement
• Implementation management
• Procurement change management
• Monitoring procurement benefits