Procuring good quality products/materials/supplies in competitive price is a new challenge for the corporates specially where the company structure is mid-ranged or below. In addition, the bigger companies also face the similar challenge when it is not a regular product though they are having a strong setup of in-house procurement professionals. The research topic is to address the need of such an outsourced procurement setup and to study its feasibilities.

The outsourced procurement set-up will work as an entity to follow all standard procurement processes: starting from analyzing the need (initial demand will be set by the requestor), setting the specification or technical schedules, short listing the supplier by validating price and quality and finally present 3 (three) lowest supplier who complies with quality and specification requirements. In such process there will not be any bidding on individual case basis; rather the procurement set-up will have a live database of specific supplier/manufacturer from where they will identify the shortlisted companies. The revenue of the outsourced company will depend on the mark up on the supply and the final procurement; whereas the purchaser will improve the quality of supply ensuring competitiveness in cost and reducing the unproductive engagement in the procurement chain; the supplier, on other hand, will save their engagement on promotion, market capture and credit recovery.

The main objective of the research is to study the feasibility in terms of cost, process, and quality of the procurement chain between traditional procurement set-up vs this proposed model. Where the study will also focus on startups where traditional procurement setup is not viable in terms of operational expenditures.