Outsourcing procurement
Targeted relief for operational procurement and indirect product groups
In indirect procurement, it is not only capacity that determines procurement performance, but above all the clear management of requirements, suppliers, interfaces and recurring processes. This is precisely where bottlenecks arise in many organisations: operational processes tie up internal teams, product groups remain fragmented, and there is a lack of transparency regarding enquiries and actions. Based on our project experience, these bottlenecks arise particularly frequently where demanding indirect product groups, such as facility management or logistics services, cannot be permanently staffed with sufficiently qualified personnel.
With outsourcing of procurement, Metroplan takes on defined scopes of indirect procurement as a manageable service model – from operational procurement to the structured handling of selected product groups. In this way, we ensure that end-users receive expert support from experienced specialist buyers from day one, whilst at the same time creating a robust operational structure for recurring procurement processes.
The focus is on tasks that are relevant to day-to-day operations but which often tie up internal teams: operational procurement, comparing quotes, tendering, supplier communication, product group management, reporting and tracking actions.
Outsourcing in procurement is particularly suitable for indirect procurement activities that are relevant to day-to-day business operations but do not directly contribute to the value creation of the end product. These include, for example, services, C-parts, office supplies, facility management, IT-related requirements, marketing services, professional services, travel and selected MRO activities. In many companies, indirect expenditure is managed less systematically than direct procurement and therefore often offers significant potential for standardisation, workload reduction and cost savings.
We do not assess this potential on a blanket basis, but rather using a realistic evaluation framework: a direct comparison between a scenario with and without outsourcing is not always possible; we therefore employ a tried-and-tested set of measures, key performance indicators and before-and-after metrics.
It is important to draw a clear distinction: the scope of this service is exclusively indirect procurement. Direct procurement and procurement-related activities that are directly critical to the product or competitiveness are not the focus of this description.
When teams are tied up by operational workload, staff absences due to illness, vacancies, special projects or transformation programmes, an outsourcing model can take on specific procurement tasks in a targeted manner and stabilise day-to-day operations.
This is particularly true when qualified procurement staff are not available at short notice, but day-to-day operations must continue without delay.
In indirect procurement in particular, there is often a lack of time, market knowledge or standardised procedures to manage smaller or scattered areas of demand cost-effectively. Here, an external partner can take on the tasks of tendering, consolidation, supplier management and the implementation of measures in a structured manner.
In practice, this often applies to complex indirect product groups such as facility management or logistics services, where specialist knowledge, market insight and clear communication with the end-users are crucial for effective results.
Companies that do not wish to build up permanent additional in-house capacity can also procure specific procurement services on a temporary or modular basis. This provides flexibility without the need to immediately establish new structures or create additional posts.
An outsourcing model can also be helpful during reorganisations, the establishment of shared services, digitalisation projects or the reorientation of procurement, as it reliably ensures that defined tasks in indirect procurement are carried out whilst, at the same time, taking the pressure off internal teams.
To begin with, we work together to determine which tasks, product groups or process steps are to be taken on by indirect procurement. Equally important are the demarcation from internal roles, the control logic, and the definition of interfaces and responsibilities.
Even at this stage, we clarify which key performance indicators will later be used to assess the model’s effectiveness – such as tendering activity, processing times, on-time delivery, the impact of terms and conditions, or the relief placed on internal capacities.
We then analyse the existing processes, systems, documents, supplier structures and areas of requirement. This provides a clear picture of process requirements, volumes, priorities and potential standardisation approaches.
Particularly where supplier or spend data is incomplete, we recommend an initial data profiling and clean-up phase. During this process, we identify and map data sources, remove duplicates and resolve inconsistencies, harmonise supplier data, form supplier clusters and product groups, and visualise the results via dashboards with clear KPIs. Mapping suppliers to DUNS numbers and Ultimate DUNS can significantly increase transparency, particularly in the case of unclassified suppliers.
On this basis, we define the specific operating model. This includes the scope of services, service levels, escalation procedures, reporting, communication procedures and integration into existing procurement and departmental processes.
This ensures that outsourcing is not treated merely as a means of expanding capacity, but as a manageable model with clear responsibilities, measurable performance indicators and transparent monitoring of actions.
In the next step, Metroplan will take over the agreed scope of work in indirect procurement. The focus here is on a structured handover, robust processing procedures, transparency regarding outstanding tasks and reliable collaboration with internal stakeholders.
The service model is continuously reviewed and refined. Depending on the target scenario, the support may be permanent or, following a transitional phase, gradually handed back to the internal organisation.
The key benefit lies in the controlled offloading of tasks: internal procurement teams gain capacity to focus on strategic issues, whilst operational processes, tender comparisons, supplier communication and the monitoring of actions are handled reliably. In projects, we have been able to demonstrate – and implement in collaboration with clients – a reduction in procurement staff numbers of more than 50 per cent, an increase in the number of tenders by more than 30 per cent, and significant savings on first-time tenders, amongst other achievements.
At the same time, this creates transparency regarding volumes, processing statuses, suppliers and recurring demand patterns. Companies thus gain not only additional capacity, but also a robust foundation on which to systematically develop their indirect procurement further. Measurable effects are also evident in operational processes: over 98 per cent on-time performance when creating new vendor records, over 98 per cent on-time performance when converting purchase requisitions into purchase orders, and an increase in revenue from payment terms of more than 1.0 per cent when creating new vendor records.
Structured outsourcing in indirect procurement stabilises recurring processes, clearly defines responsibilities and ensures that requirements are handled more professionally. This improves the manageability of the procurement organisation and reduces operational inefficiencies in day-to-day business.
Outsourcing procurement is a sensible approach, particularly in indirect procurement, when companies wish to flexibly outsource defined procurement volumes, relieve the burden on internal teams and stabilise processes. Metroplan supports you in defining a suitable service model, setting up the handover smoothly and managing the outsourced activities transparently and effectively.
Key to this is a realistic assessment of the potential, a robust data foundation and an operating model that not only creates capacity but also enables measurable improvements in tendering activity, process quality, on-time delivery and transparency.
What does outsourcing procurement mean?
Procurement outsourcing refers to the outsourcing of specific procurement tasks, processes or product groups. At Metroplan, this service focuses on indirect procurement – for example, operational procurement, supplier enquiries, comparison of quotations, tenders, reporting and monitoring of actions.
When does it make sense to outsource operational procurement?
Outsourcing operational procurement makes sense when recurring procurement processes tie up internal teams, vacancies need to be filled temporarily, or business units require a reliable service to manage their requirements. It is crucial to clearly define tasks, responsibilities and points of contact.
Which procurement services can be outsourced?
As part of the outsourcing of procurement services, the following tasks, amongst others, can be taken on: operational procurement, tender support, supplier communication, comparison of quotations, product group management, reporting and action management.
Is this a case of direct or indirect procurement?
This service focuses on indirect procurement. Direct procurement activities that are critical to products or competition are not the focus of this description.
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