Procurement management is a process that companies use to purchase business input and economic resources from vendors and suppliers. Procurement management helps companies negotiate for the best prices on quality resources for production. Smaller businesses do not generally have departments dedicated to procurement as they have smaller operations. Small business owners or entrepreneurs are usually responsible for working with vendors and suppliers directly to obtain goods for business operations, while larger companies are able to purchase resources and inputs in large volume quantities, which can result in savings. Larger, bulk purchases generally require a procurement process.
How Can Procurement Management Help Your Business?
Nearly a quarter of businesses who handle pay internally report spending more than six hours per month on payroll. Keeping payroll expenses between 15% and 30% of your gross can help to keep you and your business in financial good standing.
Today, American employers are taking longer than ever to fill vacant positions; up to 25 working days, on average. And at companies with 5,000 or more employees, the average hire time is more than twice as long, at 58.1 working days. Third party or outsourced resources can help.
According to LinkedIn Talent Solutions, nearly half of all global recruiting leaders feel that quality of hire is the most important metric for measuring a recruiting team?s performance. And, a new report issued by the United States Government Accountability Office reveals that more than 40% of the American workforce is made up of contingent workforce?that is to say, freelancers, who don?t have what is traditionally considered a secure job.
Don?t worry about those freelancers, when asked if they would like a different type of employment, less than 10% of self-employed people and independent contractors said, ?Yes.? In fact, 66% of independent contractors work full-time anyway, because 90% of firms hire freelance and contract talent.
Outsourcing contingent workforce payroll to a managed service provider can save you both money and time.