Been hearing the buzz about Procurement outsourcing? The real story, though, is Procurement insourcing. Here’s why:

For the past two years, the tea leaf readers and academic prognosticators have been telling us in deep voices that we’ll be seeing “a rapid-growth phase” in Procurement outsourcing.

The movement was supposed to sweep up the entire process, instead of simply outsourcing piecemeal functions.

Well, maybe it was biting off too much; maybe it was the economy. But this predicted outsourcing of end-to-end Procurement processes has slid into the back seat.

Instead, think in terms of insourcing.

That means finding ways to integrate Procurement and A/P functions even more than before. The closer you can push these two together, the more effective both processes will become.

Don’t be shy about taking the initiative. What could you be doing to streamline A/P operations? What could A/P do for you in return?

Maybe you want to appoint a liaison who can be your pipeline to A/P, to keep the information flowing in both directions. Could either department copy the other on regular operational memos or reports?

Establishing this kind of framework will ultimately give you more control and more say in the matter if that day ever does come when Procurement operations find their way into the outsourcing bin.

Tags: A/P, insourcing, outsourcing, procurement