Here are five common sourcing mistakes that could be costing your business more than you think—and how to avoid them.
1. Not Conducting Thorough Supplier Research
Choosing suppliers based solely on cost or convenience can backfire. Without a thorough vetting process, businesses may end up working with unreliable vendors, which can lead to late deliveries, inconsistent quality, or even legal and compliance issues.
How to avoid it:
Invest time in supplier due diligence. This includes background checks, performance history, compliance certifications, and site audits when necessary. For companies outsourcing procurement, third-party specialists often have access to extensive networks and established supplier relationships, speeding up this research process and improving outcomes.
2. Overlooking Quality Control Processes
Price isn’t everything. Sourcing cheaper materials that don’t meet quality standards can result in costly product recalls, reputational damage, or production slowdowns.
How to avoid it:
Set clear quality expectations up front and implement regular quality checks. When outsourcing procurement, a specialized partner can help monitor and maintain these standards consistently through established processes and vendor scorecards.
3. Ignoring Total Acquisition Cost
Many companies focus too narrowly on unit price, missing hidden costs like logistics, storage, duties, and service delays that can dramatically impact the bottom line.
How to avoid it:
An experienced procurement partner can help you analyze and compare vendor alternatives, taking everything into account, from shipping lead times to inventory storage costs, before signing a long-term contract.
4. Lacking a Strategic Procurement Plan
Buying on the spot and making uncoordinated sourcing decisions often results in inefficiencies, higher costs, and missed chances to secure better prices or supplier terms.
How to avoid it:
Create a strategic procurement roadmap. Whether you manage it internally or with an outsourced team, your procurement function should be aligned with your company’s overall goals, policies, and values. Third-party procurement providers often use tools and benchmarks to help structure and optimize this process for long-term gains.
5. Delaying the Shift to Outsourced Procurement
As your business grows, your internal procurement team might struggle to keep up with increasing complexity, new vendor relationships, and contract negotiations. Many businesses wait too long to consider outsourcing and miss the chance to scale more effectively.
How to avoid it:
Explore outsourced procurement early, especially when scaling or expanding to new markets. Delegating purchasing responsibilities to a specialized third party can unlock savings, bring expertise, and reduce risk. The right partner can manage everything from sourcing and contract negotiation to forecasting, planning, and even warehousing.
Rethinking the Procurement Journey
Companies of all sizes are embracing outsourcing procurement as a strategy to boost performance and profitability. Here’s what outsourcing can bring to the table:
- ✅ Access to skilled procurement professionals and global supplier networks
- ✅ Improved cost control and better supplier terms
- ✅ Increased efficiency and order compliance
- ✅ Better alignment with company values and policies
- ✅ Enhanced visibility and transparency in purchasing decisions
While outsourcing may feel like a loss of control, the right partner acts as an extension of your team—helping manage costs, maintain standards, and create value across your supply chain.
Procurement + Logistics = Supply Chain Success
Have you ever thought that procurement services can be offered by your 3PL (Third-Party Logistics) partner? The right 3PL can offer end-to-end support—not just with moving goods, but with sourcing them as well.
By combining logistics and procurement services, your business gains an integrated approach to managing supply, storage, and vendor performance. From negotiating supplier terms to optimizing inventory and forecasting demand, outsourcing procurement to a 3PL puts you in control of a leaner, more resilient supply chain.
Need help identifying the gaps in your sourcing strategy?
Let’s talk. Our team of procurement experts can help you avoid costly mistakes and build a stronger, more efficient supply chain from source to delivery.