If your company is looking to grow and expand, you may be looking at putting together a strategic procurement plan. This involves putting together a buying plan that allows you to buy items when it is most cost effective to do so while buying just enough so that your business has enough money to grow and sell the products before they go bad or become outdated. Everything from the vendors you buy from and the time of year you buy certain items to bulk discounts and how much your company is expected to grow every year need to be looked at when you are developing a strategic procurement plan. However, for many businesses, particularly small ones, coming up with this plan can be challenging. This is why you may be considering hiring a strategic-procurement sourcing consultant. If you are considering hiring one, learning about the pros and cons may help you decide if working with one is ideal for you business. Here are some of the pros and cons of hiring a strategic-procurement sourcing consultant.
Cons of Hiring Strategic-Procurement Sourcing Consultants
- Consultants Tend to Gravitate Toward Lower-Cost Sellers
One of the downsides to using a strategic-procurement sourcing consultant is that they tend to gravitate toward lower-cost sellers to fulfill your orders or obtain your supplies. This helps to immediately reduce the amount of money you are spending on these items. However, lower costs are not always better. If the products are cheaply made, they may not last as long or be as high quality as you or your customers have come to expect. You have to carefully convey your expectations to a sourcing consultant to ensure you are not sacrificing quality for savings, if that is what you desire.
- They Have No Control over Vendor Promises
The other disadvantage to using a strategic-procurement sourcing consultant is that they often work with vendors to get a long-term deal in place for both you and the vendor they are using. However, what may look like a good deal can sour if the vendor cannot hold up their end of the agreement. Both you and the strategic-procurement sourcing consultant have no control over a vendor who makes promises that they cannot keep. When looking for a strategic-procurement sourcing consultant, try to find one who is already experienced in the industry your business is related to. They may already have contact with vendors who have a strong track record. This can help you feel at ease that the promises the vendor makes will actually hold true for years to come.
Pros of Hiring Strategic-Procurement Sourcing Consultants
- You Are Hiring a Specialist That Knows What They Are Doing
The biggest upside to hiring a strategic-procurement sourcing consultant is that you are hiring a specialist that knows what they are doing. As a business owner, there is a lot for you to learn. And failing to take the correct actions can stunt the growth of your business. Outsourcing some of the key parts of your business, such as strategic procurement, can pay off. A specialist can help you put together a comprehensive and realistic plan that will help your business grow and thrive in the future. This is something that the average business owner may not have the expertise, experience, and financial background to put together on their own.
- You Can Save Money
The other advantage to hiring a strategic-procurement sourcing consultant is that you can often save money when working with one. A strategic-procurement sourcing consultant can help negotiate better deals with vendors than you may be able to negotiate on your own. This is because they can lump all areas of your business into one group. They may also work with similar companies, bringing in a large volume of orders to the business, and that helps them negotiate better deals. Saving money can help your business thrive, so this is a key feature to pay attention to when looking to hire a sourcing consultant.
Deciding to work with a strategic-procurement sourcing consultant can be a big decision. Taking the time to learn the pros and cons can help you decide if hiring a consultant is the right course for your business.Share