Indirect Spend Optimization

Realise effective and sustainable savings in procurement of indirect requirements.

 

Raising potentials in procurement of indirect requirements

The procurement of indirect requirements is one of the largest expenditure items in many companies. Depending on the industry, it accounts for 20 to 30 per cent of the total purchasing volume. Indirect spend includes all services, capital goods and consumables required for ongoing business operations that do not flow directly into a company’s value creation process. This includes services and indirect materials for the specialist departments, such as IT and telecommunications expenditure, logistics, facility management or waste disposal.

Our experience from over 2,500 optimisation projects in Indirect Spend shows a high, often underestimated savings potential. With the goal of sustainably reducing costs in the company, indirect procurement is often neglected because the numerous expenditure items are not transparent and the procurement of these requirements is rarely structured. Yet an optimisation of indirect procurement has a noticeable and often very short-term effect on the annual result: Cost savings of between 10 and 20 per cent can be achieved through structured procurement of indirect requirements.

 

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In indirect procurement, the challenge usually lies in the decentralised organisation. Procurement processes are often managed from within the individual departments and not centrally via procurement (maverick buying).

We support you in analysing your requirements, create transparency and develop a clear requirements structure. In close coordination with internal demanders and stakeholders, we advise you on demand management and implement standardised, sustainable processes, taking into account possible digital procurement applications.

To ensure long-term success, the solutions developed are consolidated in individual training sessions. We can also support you in operational procurement through bundling and renegotiation with suppliers. Within the scope of our consultancy, the use of more sophisticated methods such as respecification or tail-end management is also possible.

Find out how we can support you with effective solutions.

 

Learn more about raw materials procurement

 

Focus topics in indirect procurement

IT requirements are changing rapidly in the course of the digital transformation. The secure and fast provision of large amounts of data, innovative applications and new virtual services is not only a major challenge for IT management. The skillset of procurement must also constantly evolve. For this purpose, procurement should be integrated into the processes at an early stage. Optimising IT procurement pays off in two ways: in reducing the costs of hardware and software and in the efficient procurement of IT services. Thanks to our expertise, we can support you in this and, despite the market power of some manufacturers, achieve optimal conditions through individual service and price models.

Construction and facility management are currently shaped by two central issues: Material shortages and sustainability. The ongoing construction boom and pandemic are leading to rising prices for building materials due to supply shortages. With active risk management, the development of new procurement markets and material substitution, you can counteract price increases.

In addition to classic approaches such as outsourcing facility management or introducing integrated facility management concepts (IFM), we are also happy to advise you on strategically advancing the topic of sustainability in facility management.

 

As manufacturing companies increasingly focus on their core competencies, the outsourcing of services and processes is increasing. As a result of this development, service purchasing has become an important success factor for companies. Thanks to our extensive project experience, we have a comprehensive overview of the market and price benchmarks in all commodity groups. Together with you, we ensure transparency and establish best-practice strategies for service purchasing in packaging and logistics, travel & fleet management, HR and marketing.

 

Whitepaper: Procurement optimisation of indirect requirements

In our whitepaper, you will learn about innovative solutions that can help you realise savings potential in indirect procurement. We also explain the basics that need to be taken into account to ensure cross-company and cross-departmental support for optimising indirect spend.

 

Download the white paper free of charge

Our indirect spend expert

Kiran Mazumdar

Managing Director

kiran.mazumdar@inverto.com Contact

Halûk Sagol

Associate Director

haluk.sagol@inverto.com Contact

 

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