Companies are choosing to outsource processes, services and even part of production to optimize management and reduce operating costs. Regarding this, Statista highlights that the outsourcing services market in Spain currently moves 6,000 million euros and is expected to reach 7,200 million in the next four years.
Purchasing departments are leading this outsourcing trend through Business Process Outsourcing (BPO), so that they outsource key processes such as order management, invoices, payments, supplier approval and minor purchases. This strategy not only seeks to reduce costs, but also to comply with strict parameters of responsible and sustainable management.
“Delegating the management of the different processes of the purchasing area to a third party is key in terms of efficiency and profitability. From our BPO area, our clients have been able to reduce their operations costs by 25% to 30% and average operations times by 20%. But it is important to understand that BPO specialized in purchasing offers a series of strategic benefits that go beyond simple cost reduction.”, explains Rosario Piazza, Partner of Fullstep’s Services area.
Demand for outsourcing purchasing management processes has grown by around 10% over the past five years, and 2025 is expected to see a further 15% growth.
Since the pandemic, the demand for BPO in the procurement area has grown exponentially. According to Fullstep, the outsourcing of these processes has increased by 10% in the last five years and a further growth of 15% is expected by 2025.
BPO, in purchasing outsourcing
One of the critical points for companies is the management of minor purchases, which can represent up to 60% of their purchases. Outsourcing these processes to purchasing experts allows companies to focus on their main objectives and supplier management. And the fact is that hiring a BPO service provides benefits from day one, with a return on investment (ROI) of more than 100% in a period of between five and six months.
The integration of technology in purchasing management has become a key point for generating value and obtaining a competitive advantage. Digitalization allows us to gain transparency, traceability, scalability, efficiency and profitability. Large companies seek the help of third parties for rapid execution, savings and improvement of conditions, as well as the centralization of order issuance and their monitoring.
«Investment in advanced purchasing management technologies focuses on supplier management systems (SRM), big data analytics and artificial intelligence solutions, which improve efficiency and decision making. These technologies allow companies to have real-time analysis and control of the state of supply and their commercial partners, offering a significant competitive advantage,” concludes Rosario Piazza.
