Unleashing your potential: outsourcing strategic processes

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Outsourcing strategic processes can bring more added value to secure performance and enable internal resources to focus on the big picture.  When it comes to new supplier identification, negotiation or strategic sourcing process, many of our clients need to increase the level of expertise and empowerment without adding headcount. By outsourcing these processes to a dedicated team, the client can also focus on what is most important to its business – whether it’s innovation, restructuring, or reassessing the market to meet their customer’s needs.

Supplier Scouting

Many procurement departments do not dedicate enough expertise and time to scope for new, qualified suppliers and insure comprehensiveness and robustness of supplier market screening. Moreover, supplier scouting could be extremely time consuming if the focus on the most promising areas is not enough defined and documented. When procurement is challenged to meet production demands, finding new suppliers as plug and play as possible is a long and painful task.

KEPLER's best practice

Utilizing a macro study methodology like KEPLER’s, regional supplier identification can be limited to the countries most likely to commercially produce the needed product or category. Through this data driven approach, an exhaustive search can be conducted and result in a shortlist of screened suppliers to conduct RFI, RFQ/RFP, or on-site qualification. By outsourcing this process to a global team, with resources where the suppliers are located, the client can focus on keeping the lines running.​

Supplier Negotiation

When it comes to managing suppliers, our clients often have too many of them to consistently maintain contact with. As a result, some negotiation opportunities are not addressed at all, such as remote suppliers, non-critical technologies, tail spend. Utilizing a third party to analyze spend, build clear vision and negotiation strategy and directly negotiate with suppliers is a great way to quickly capture untouched savings opportunities.

Figure 1

Through refined processes and tools for negotiation, it becomes possible to provide an outside perspective and identify new savings.

KEPLER's business case

For one of its clients, KEPLER reviewed over $135M spend and 154 suppliers to prepare for negotiations. Over the course of 3 months, the team prepared toolkits and engaged in negotiation with 87 suppliers, enabling the client to capture 3% in previously unidentified savings.

Procurement Outsourcing

Client initiatives are always constrained by a lack of resources but adding internal people is often not possible or non-relevant. Whether the work is time limited and there is not a need to sustain resources, or there are not available resources to staff a project, outsourcing the process at an optimized cost is a reliable and flexible solution for short or long-term staffing. 

KEPLER's best practice

KEPLER organizes mixed operational teams with local consultants and offshore / low cost consultants (India), to manage and execute on our BPO offerings. Through its deep knowledge in procurement and supply chain, KEPLER is able to effectively manage processes and adapt to the needs of its clients, regardless of the maturity of the process.

KEPLER's business case

For one of KEPLER’s clients launching a new product, the ability to outsource the end-to-end sourcing process enabled them to meet tight production deadlines without carrying additional long-term resources. Over the course of 10 months, KEPLER negotiated and placed orders for 1200+ parts and $11M spend. By outsourcing the sourcing of high mix, low complexity parts, the client team was able to focus on highly complex, system level sourcing initiatives. By utilizing flexible resources, the client was able to increase their sourcing throughput by 20% and focus their industry knowledge on strategic initiatives.

Outsourcing is not only a question of bringing additive resources, it is also and mainly a question of efficiency. Bring more value added with experienced team and robust methodologies, deploy flexible team fully aligned with the workload and planning of each initiative, optimize cost through remote low-cost professionals allow KEPLER to go further, deeper and quicker compared to internal teams.

Outsourcing is also a great method to refocus on the core business strategy and elevate above the day-to-day challenges that can block change.