Outsourcing to Procurement Service Providers

Procurement service providers are effectively experienced middlemen who facilitate relationships between buyers and suppliers across the globe.  They act as agents or consultants and are usually brokers for the buyer. They work using an extensive database of reliable international suppliers that have good performance records. 

Third-party outsource companies source a wide range of goods and services from raw materials to finished products, a large portion of which is sourced from low cost countries and emerging markets in Asia. However, there are many unreliable and fly-by-night suppliers out there in the global market, procurement service providers can assist with avoiding the pitfalls.

Their service offerings

Some of the best known procurement outsourcing companies work with major relief and emergency projects in the development sector of the economy as well as in normal commercial transactions. International emergency aid and project-driven organizations use their services to source and distribute relief commodities and food. These services have to be provided quickly and efficiently at the best price.

Their work process

Procurement service providers may specialize by industry sector and can offer areas of expertise such as providing e-procurement hosting and management services as well as vendor management, supplier risk assessment and writing contracts.  They are especially active in the health, textiles, FMCG, consumer goods, and agriculture sectors.

What procurement service providers can bring to a buyer:

  • Offer systems and processes to limit risk and that ensure accountability, transparency and value for money
  • Assist in developing specifications and pre-qualifying suppliers
  • Manage tenders and Requests for Proposal and doing the negotiations to ensure fairness


Services may include managing the whole end-to-end process as a turnkey project. Some agencies or consultancies include not only the sourcing but quality assurance, logistics, shipping, and management of all financial transactions. They make their profit through leveraging group spend and buying in bulk. 

Safe outsourcing

Using procurement service providers for their know-how can save a buyer money and management time, and time is money.  Their track record is a good indicator of the service you can expect. Three years experience and references from satisfied customers can provide you with some confidence that they are reliable and can deliver on time.

Global procurement consultants can provide more than sourcing and order processing, they have additional services that will provide buyers with cost savings and efficiencies and therefore a competitive edge for their businesses.


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