Outsourcing Management
OUTSOURCING MANAGEMENT
Twenty five years of experience in Procurement, Supply Chain Management, Outsourcing and Supplier Relationship Management
Outsourcing Management
Most companies outsource at least some element of their operation, even if it’s just the cleaning or parcel delivery. Each new outsource decision will inevitably require some sort of cost/benefit analysis, and can often result in the redeployment of staff.
What is often overlooked, however, is the implementation, feedback and review process, and the ongoing management of the arrangement – that’s where Profit Through Change fits in.
Based on over twenty five years of experience
in Procurement, Supply Chain Management (SCM), Outsourcing and Supplier Relationship Management (SRM), Profit Through Change
can work with you as you make the decision to procure, manage or outsource, through the selection process, during the implementation and for the early days of the service delivery.
This allows your company to not only outsource the function, but also the management of the outsourcing relationship as well - this will ensure service and continuity is maintained throughout.
Co-ordination of different outsource providers is often cited as the cause of conflict and dispute and the reason for the failure of a party in fulfilling its service commitments.
Profit Through Change
can act to co-ordinate outsourcing activities, consolidate the management and oversee the interaction between contractors and if necessary mediate in disputes.
Outsourcing Services
The decision to outsource is a complicated balance between retaining control of a function and introducing expertise into a non-core activity and thus enabling the organisation’s time and resources to be spent focusing on its core objectives.
Whilst the usual justifications for outsourcing are financial benefits and cost savings, very often enhanced customer service or improvements in operating margins can also be obtained. However, in order to derive the optimum returns from an outsourcing arrangement, it is critical for three elements to be properly addressed:
1. Selection - The outsource provider must be carefully tendered and selected, and appropriate due-diligence undertaken;
2. Implementation - The internal structure of the organisation needs to change to reflect the move to an outsourced solution;
3. Monitoring - It is essential that there is a mechanism in place for monitoring and controlling the outsource provider;
Herein lies the basis of the four core offerings of Profit Through Change Ltd – Procurement & Tendering services, Outsourcing Management, Change Implementation and the embedding of the change with effective education and training.
Furthermore, once a company has chosen to outsource a function, it is often difficult to change supplier or revert to an in-house solution, but sometimes this needs to occur. Profit Through Change specialises in managing this process: it can prepare and implement an exit strategy, and if necessary tender and select an alternative supplier or re-establish an in-house solution.
Outsourcing Management
What is Outsourcing
Numerous definitions can be found defining what outsourcing really means, these include:
* The transfer of a function previously performed “in-house” to an outside provider.
* Purchasing service from an outside vendor rather than using internal resources.
* The practice of having goods or services provided by a person or persons outside the business or organisation.
* The concept of taking internal company functions and paying an outside firm to handle them.
etc
The Profit Through Change definition would include all of these but succinctly:
“Outsourcing is the delegation of non-core activities or operations from within the company to an external third-party that has an expertise in that field, thereby leaving the company free to concentrate on their core business objectives.”
Critical to the outsourcing concept is the fact that it is only the operation that is transferred to the third-party contractor, not the responsibility to ensure that the various outsourced functions fit together, work in combination, or deliver financial and service characteristics to plan – management of the contractors, contracts and services remains with the outsourcer at all times.
Outsourcing Sevices
Partners Page
Over the years, Profit Through Change has identified a number of companies that offer good quality products, value for money, or an exceptional service.
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example@mail.com
Outsourcing Benefits
The reasons to outsource and the potential benefits have been well documented, however in summary the following are felt to be the most common reasons to enter into an outsourcing agreement:
* Cost savings
* Improved quality
* Enhanced risk management
* Reduced investment in plant and machinery
* To raise cash through the transfer of assets to the supplier
* Replacement of some fixed costs with variable costs
* Improved innovation and refreshed thinking
* To give access to industry best practices
* Increased flexibility to meet business or customer needs
* Improved expertise & skill levels
* Reduction in headcount
* Ability to focus on core functions
* Reduced administration costs
* Improved service levels
* More reliable cost base
* More control on budgets
* Improved business continuity
and security of supply
* Faster "concept to delivery"