Increase Your Bottom Line by Managing Indirect Spend: Five enablers to help your procurement team deliver great values
The supply chain landscape presents complex challenges for any global procurement team. There are pressures to reduce costs, drive down risks, develop more strategic supplier relationships and deliver a sustainable, competitive advantage to the business.
Perhaps no tool is more important to procurement in managing spend and minimizing risk than the supplier contract. Buyers work hard to negotiate beneficial terms that improve a company’s profitability, and their work can make a real impact. On average, indirect spend constitutes about 40% of a typical company’s annual disbursements. According to the Everest Group, just a 5 percent reduction in indirect spend can translate into a 1 to 3 percent impact on a company’s bottom line.