What a procurement BPO is
BPO stands for Business Process Outsourcing: handing an entire business process over to a third party. In procurement, the provider assigns a team, often in shared service centers, that works inside the client’s systems and policies.
- How it operates. It receives requests, gets quotes, issues purchase orders in the client’s ERP and, in many cases, also manages catalogs and accounts payable.
- Its value. Scale and standardization. It is built to move large transaction volumes through defined processes, in several countries at once.
- How it makes money. Per assigned headcount or per transaction processed, usually under multi-year contracts.
- Its limit. The purchase is still your company’s. Every new tail supplier is still onboarded in your vendor master, and you still receive and pay one invoice per supplier.
What AROLICO does
AROLICO does not run your process: it makes the purchase. You send us the need, we quote several suppliers, present you the comparison and, once you approve, we buy under our own company name, with a purchasing mandate for each order.
- One onboarding. You onboard AROLICO once. Tail suppliers go into our vendor master, not yours.
- One invoice a month. Consolidated and reconciled order by order, instead of dozens of small invoices.
- Signed lead times. We commit by contract to the time until the purchase order is issued. If we miss it, that order is free of charge.
- Technical purchasing. We add early-stage engineering to specify a spare part or a service properly before quoting it.
The core difference: who the buyer is
With a BPO, your company is still the buyer: the BPO works with your tools and in your name. That is why supplier onboarding, the longest stage of a low-value purchase, does not go away: only the person processing it changes.
With AROLICO, the buyer facing each supplier is AROLICO. Your company has a single supplier for all of its tail spend, and onboarding each one-off supplier is taken out of your operation.
Side-by-side comparison
| Procurement BPO | AROLICO | |
|---|---|---|
| What is outsourced | The process: people who run your purchasing, and sometimes your accounts payable | The tail purchase itself: AROLICO quotes, buys and delivers |
| Whose name the purchase is in | Your company’s: orders come out of your ERP | AROLICO’s, under a purchasing mandate for each order |
| Suppliers in your vendor master | The same as always: every new supplier still has to be onboarded | One: AROLICO, for every category in the mandate |
| Invoices you receive | One per supplier | One consolidated invoice a month |
| Scope | Broad: strategic sourcing, catalogs, orders and payments | Focused: the tail of small, one-off purchases |
| How it charges | Per headcount or per transaction processed | For managing each order, separate from the supplier’s price |
| What it commits to | Process service levels: tickets, response times | Lead times until the purchase order; if missed, that order is free of charge |
| Setup | Transition of processes and systems, usually taking several months | Assessment of your order extract, a framework contract and a single onboarding |
| Technical know-how | Processes and transactions | Technical purchasing, with early-stage engineering to specify before quoting |
When a procurement BPO fits
- When you want to outsource the entire process, including strategic sourcing and accounts payable.
- When the volume justifies a dedicated team and a transition lasting several months.
- When you need the same process across several countries.
When AROLICO fits
- When the problem is your tail spend: many small orders to suppliers you rarely use again.
- When onboarding new suppliers holds up purchases that should be resolved in days.
- When you want fewer suppliers and fewer invoices, not just less internal work.
- When you prefer to start without changing systems: AROLICO comes in as one more supplier.
They are not mutually exclusive
If your company already has a BPO, AROLICO can take over just the tail. For the BPO, AROLICO is one supplier with one monthly invoice: fewer transactions to process and fewer suppliers to onboard.
Some providers that call themselves BPOs work under a purchasing mandate, and others do not. That is why it pays to ask directly whose name the purchase is made in.
Questions to ask any purchasing provider
- Are orders issued in my company’s name or the service provider’s?
- How many new suppliers will I have to onboard in my vendor master?
- How many invoices will I receive each month?
- What lead times do you commit to by contract, and what happens if you miss them?
- How long does setup take, and what changes in my systems?
- How do you charge, and will I see the supplier’s price and the service cost separately?
We won't promise you a savings percentage before seeing your data: that is measured in the assessment. What we do sign from day one are the lead times. Permitting is always outside the scope of the service.
Frequently asked questions
What is a procurement BPO?
It is the outsourcing of procurement processes to a specialized third party, usually through shared service centers. The provider’s team works inside the client’s systems and policies: it processes requests, issues orders in the client’s ERP, manages catalogs and sometimes accounts payable as well. It usually charges per headcount or per transaction and works under multi-year contracts.
Is AROLICO a BPO?
AROLICO is an outsourced procurement service, but not a traditional BPO. It does not work inside your ERP or process your orders: it buys under its own company name, with a purchasing mandate, and sends you one consolidated invoice a month. That is why you onboard a single supplier, AROLICO, instead of every supplier in your tail.
Can you use both at the same time?
Yes. A BPO can stay in charge of the general purchasing process and accounts payable, while AROLICO takes over the tail of low-value purchases. For the BPO, AROLICO is one more supplier with one monthly invoice, which reduces the transactions it has to process.