Can Purchasing be Outsourced?

[somashekar]

Subject/thread title says all I'm asking.

I guess any function/area of a company’s operations can be outsourced but it will be interesting to see what Cove members have to say on this.

Purchasing can be outsourced, yaaa.
So the 7.4 requirement gets to be addressed in the 4.1 requirements.
Which will be outsourced ... Purchasing
Now the plan to control this process ... who will control this major process, what will be controlled, when it will be controlled, where it will be controlled, How it will be controlled., shall be identified within the quality management system.

 

[amanbhai]

What is there in the standard that would lead you to question whether or not purchasing could be outsourced?

You make me lol and you have a valid question.

 

[Ka Pilo]

What is there in the standard that would lead you to question whether or not purchasing could be outsourced?

ISO 9001 clauses 4.1 and 7.4
We know that there are specific requirements for Purchasing. If a company wishes that purchasing process be performed by external entity, the company need to address 4.1. Meeting other aspects of purchasing process such as evaluation and selection of suppliers, specification of the required product in PO, checking purchase items etc would be delegated to the external entity. It seems to me that if external entity addresses all of these aspects, the company only has to do is to control the outsourced process including the interaction between the company and external entity and ensure that it is effective.

 

[JaneB]

ISO 9001 clauses 4.1 and 7.4
We know that there are specific requirements for Purchasing. If a company wishes that purchasing process be performed by external entity, the company need to address 4.1. Meeting other aspects of purchasing process such as evaluation and selection of suppliers, specification of the required product in PO, checking purchase items etc would be delegated to the external entity. It seems to me that if external entity addresses all of these aspects, the company only has to do is to control the outsourced process including the interaction between the company and external entity and ensure that it is effective.

But what about the question Jim asked?

 

[jelly1921]

Subject/thread title says all I'm asking.

I guess any function/area of a company’s operations can be outsourced but it will be interesting to see what Cove members have to say on this.

You can outsource purchasing process. But you can not excluse 7.4, since you need 7.4 to control your purchasing process

 

[JaneB]

You can outsource purchasing process. But you can not excluse 7.4, since you need 7.4 to control your purchasing process

Yes, exactly.

 

[D1nOnly]

You know that is a good question since i also work in the Purchasing Department and throughout the 22 years I have been with the company. I have seen so many positions and department outsourced. That I believe in today's world everything can be outsourced. What may seem like the impossible is never impossible. Another reason why I feel Purchasing can be outsourced came about on Monday when my boss mentioned that my position could have been "Outsourced" but he choose to keep me.

Unfortunately No matter how Positive we all try to be... The reality is No job or position is stable.

 

[PE-2011]

Purchasing can be outsourced, yaaa.
So the 7.4 requirement gets to be addressed in the 4.1 requirements.
Which will be outsourced ... Purchasing
Now the plan to control this process ... who will control this major process, what will be controlled, when it will be controlled, where it will be controlled, How it will be controlled., shall be identified within the quality management system.

Dear Mr.Somashekar,

So, clause No.7.4 - if we call it as "purchasing" or "outsourcing" - both are same?

I wish to understand the difference between.

Regards
Maheswari

 

[harry]

Industrial Marketing/Purchasing had always been a game of 'relationship'. There are long term mutual benefits for both parties.

Outsourcing (of purchasing)? I think is a short sighted move that only benefits the middle man. But then, reaping immediate gains and sacrificing long term benefits seems to be the order of the day - especially if your performance is being measured from quarter to quarter.

 

[JaneB]

So, clause No.7.4 - if we call it as "purchasing" or "outsourcing" - both are same?

They're very similar and closely related. Though I disagree that 'it's all covered in 4.1 - it isn't. 4.1 spells out very clearly that any organisation that chooses to oursource something remains responsible . Previously, some misguide businesses apparently believed that just because they chose to outsource a task/activity/service, then the responsibility became entirely that of their supplier. Not so.

IF you outsource anything, all the 'purchasing' requirements still apply (clause 7.4) because you are purchasing services from whoever you choose for your outsourcing.