How Procurement as a Service can transform traditional models

25 September 2023 3 min. read
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A growing number of organisations are adopting Procurement as a Service (PaaS) solutions to enhance how they manage their procurement processes. But what is PaaS exactly? Experts from August Consulting introduce the concept and outline its main benefits.

Fundamentally, Procurement as a Service represents an elevated approach to procurement management. In contrast to the traditional in-house procurement model where all facets of procurement are managed internally, PaaS offers businesses a strategic outsourcing solution.

Procurement as a Service involves partnering with procurement specialists to oversee various procurement functions – from sourcing and supplier selection to contract management, data analysis, and performance management.

How Procurement as a Service can transform traditional models

Notably, the PaaS model can be tailored to suit a business’s specific requirements, with procurement services ranging in level of involvement; from advisory support all the way through to full-scope, end-to-end procurement.

The value of efficient procurement

Forward-thinking business leaders are recognising that efficient procurement goes far beyond the mere act of purchasing. It involves a more strategic approach including advanced analytics, complex negotiations, strategic supplier relationships, risk mitigation, and a delicate balance between cost saving without compromising quality.

With this in mind, businesses are realising that investing in a specialist Procurement as a Service provider can unlock a competitive advantage.

How PaaS is transforming traditional models

Procurement as a Service redefines how businesses approach procurement and can unlock numerous benefits across entire organisations. PaaS frees businesses from the limitations of resource-intensive, in-house procurement processes and enables them to leverage the market intelligence and industry knowledge of procurement experts. This shift allows business leaders to focus their energy on other strategic pursuits, instead of being caught up in the complexity of procurement activities.

In addition, PaaS offers significantly more flexibility and scalability than traditional procurement models. PaaS specialists are skilled in swiftly adapting as markets fluctuate and business demands evolve, ensuring that procurement strategies remain aligned with the organisation’s key goals and objectives.

How Procurement as a Service can transform traditional models


As business technology evolves, it’s inevitable that the future of procurement will have a strong focus on digital innovation. Businesses investing in PaaS will have a proverbial ‘leg up’ by engaging specialists equipped with expert knowledge in supply chain optimisation and cutting-edge procurement technology.

For businesses that may struggle to invest and implement these technologies on their own, PaaS offers valuable access to advanced analytics, tools, and systems, enabling them to stay competitive without the time and resource investment of developing these capabilities in-house.

According to research from analyst firm Grand View Research, the global Procurement as a Service market size is expected to grow at a CAGR of 11% up to 2030 to reach a value of over $20 billion by 2030.