Flexible like a startup – strong like a corporation
More and more German-speaking companies of all industries and sizes are outsourcing their purchasing activities, in other words they outsource operational purchasing tasks to neighboring countries such as Slovakia. In this interview you will learn about how you grow on call with nearshoring, inspire your buyers and implement a nearshoring project step by step.
Why should medium-sized companies think about nearshoring in purchasing?
There are a number of motives that motivate our customers to outsource their operational purchasing activities to our shared service center in Slovakia. The main drivers across all industries are global competitive pressure and the desire for more flexibility.
If the order situations decreases or increases, for example, our customers can use nearshoring to adapt to their new situations almost in real time – flexible like a start-up, powerful like a corporation. We are therefore also talking about growth on call. By outsourcing operational and thus non-value-adding purchasing activities, our customers give their buyers new scope for more important topics, such as digital transformation.
At the same time, personnel costs can be reduced by up to 50 percent without laying people off, because our customers need the released purchasing capacities for strategic topics. In the end, purchasing in the company is upgraded and made more visible.
For which parties is outsourcing particularly suitable?
In principle, outsourcing is worthwhile for everyone. The advantages of flexibility, cost reduction and increased efficiency always occur – regardless of company size or industry.
Is it possible to test outsourcing on a small scale?
Yes, we have been able to successfully implement a large number of projects in recent years and know very well that such a test phase is indispensable. Such projects only work “step by step”. For example, we initially outsource simple, repetitive and non-critical activities for our customers, such as maintaining order confirmations. Fears can be reduced and the positive effects of such a project also arouse the curiosity of employees for more outsourcing.
How can I be sure that such a project will work?
It already starts with the language. Our Slovak shared service center communicates with customers from the DACH region in German. That is why we have also agreed on German as our operating language. With the suppliers, we communicate in the respective national language or in English.
Furthermore, it is important to us that we define in advance the procedures, tasks, goals and responsibilities with the employees of our customers in a transparent way.
In addition, the experience of the outsourcing service provider is of course decisive for the success of the project. Has he specialized? How long has he been on the market? What are his references and awards?
Kloepfel Services thus builds on the wealth of experience and knowledge of Kloepfel Consulting. In the last ten years alone, the purchasing consultancy has processed 8.7 billion euros in purchasing volumes and qualified and negotiated around 70,000 suppliers from over 130 countries on a 100% success basis.
And last but not least, changes in the company only work if the employees participate. To achieve this, we rely on communication and transparency in order to attract people, demonstrate their personal advantages and reduce their fears.
Keyword data: How do companies make their master data fit?
The master data in medium-sized businesses is often not in an ideal state. If companies do not yet want to introduce outsourcing today, they can test the quality and cooperation of Kloepfel Services by commissioning us to prepare their master data – from collection and structuring to maintenance. After all, the master data has to be prepared anyway. Regardless of whether you introduce new digital tools or outsource processes.
What about the security of highly sensitive purchasing data?
Thanks to the expanded infrastructures of the internet, higher bandwidths and our modern IT, we can connect directly to the most diverse ERP systems of our customers. The buyers of our shared service centers carry out all activities directly in the systems of our customers. Data and data sovereignty thus remain with the customer. As a member of the European Union, Slovakia is also subject to the European Basic Data Protection Regulation.
How do digital transformation and outsourcing fit together?
Digital purchasing and digitization platforms such as proctopus and nearshoring ideally complement each other, as digitization cannot completely replace the human factor. There are many activities that cannot be digitized or automated. For example, the topic of spot purchasing, in other words the procurement of rarely needed products and services. This has to be done manually in addition to digitization. In the dunning process, purchasers are also needed to validate documents and processes. All these services can also be outsourced to our shared service center. Special about it: Kloepfel is the first specialist with whom purchasing receives everything from a single source. From digitization to virtual purchasing networks and logistics optimization to nearshoring. This is unique in Europe and a great opportunity for medium-sized businesses.
What effects does outsourcing have on suppliers?
Purchasing gets more time so that it can take better care of the most important suppliers. Whether it’s innovation management or coordinating strategies.
Contact:
Kloepfel Group
Christopher Willson
rendite@kloepfel-consulting.com
Phone: +4921187545323