Procurement outsourcing refers to the process of delegating procurement-related activities to a third-party service provider. The third-party provider will be responsible for either the entire process or a portion of it. It is generally used for non-core activities and used when an organisation may not have adequate resources, skills, or the expertise in-house. As such, outsourcing allows for scaling up on more strategic priorities for the organisation.
In Local Government, effective procurement is important in ensuring councils achieve their objectives, demonstrate value for money and deliver benefits to the community when procuring goods and services. This comes with risks and challenges in ensuring the purchased goods and services deliver to expectations.
In matters of procurement outsourcing by councils in NSW, the consulting team at LGP boasts of procurement professionals who understand the real-world needs of the local government sector. As such, when councils outsource procurement processes with LGP Consulting, this would not only give the council peace of mind in their procurement processes, but also would in effect complement the existing expertise that council already possess.
Other benefits include:
• improved focus on core council business activities allowing council staff to concentrate on main tasks as well as on future strategy.
• Choosing an outsourcing provider that specialises in the process or service required can help achieve a more productive, efficient service, often of greater quality.
• Cost savings achieved by outsourcing can help council in other areas of interest.
• Outsourcing may provide access to capabilities and facilities otherwise not accessible or affordable.
• Outsourcing may help councils leverage knowledge and skills to gain competitive advantage.
• Outsourcing may also help to make councils more flexible and agile, able to adapt to changing market conditions and challenges while providing cost savings and service level improvements.
If you want to learn more on Procurement Outsourcing, please do not hesitate to contact the LGP Consulting team via email or call our consultants on 02 8270 8747.