Indirect Spend Managed Service
53% of Senior Executives from FTSE 100 businesses expressed low satisfaction in the value indirect procurement brought to their organisation
The Pareto Rule summarises it perfectly:
80% of your total spend will be with your Top 20% of suppliers….. these are likely to be your core, direct suppliers
The remaining 20% of your spend will be spread over the remaining 80% of your supply-base… likely to be your indirect or overhead spend categories and your tail spend
Many organisations are segmenting their expenditure and applying their own resources accordingly:
Core, directs are managed by the in-house procurement team. They have the specific expertise, category knowledge and intimate understanding of business processes to provide the optimum management and impact.
The remaining Indirect Spend categories are often left to non-commercial departments, administration functions or totally unmanaged. An Indirect Spend Managed Service is the perfect solution, leveraging Procura expertise, capacity, supply-market knowledge, benchmarking, tools and commercial drive to optimise non-core purchases.
Benefits of an Indirect Spend Managed Service include:
- High Return On Investment – our experts drive ongoing savings from your indirect spend
- Reassurance of total spend management – a high-performance procurement team managing your spend
- Access to deep supply-market knowledge, benchmarks, tools and commercial drive
- Focus your resource on your core suppliers and spend categories
- Cloud-based management tools and regular reporting and KPIs
Our hybrid subscription/performance incentivisation model provides clients with budgetary clarity plus the commercial incentivisation to drive year-on-year improvements to your cost base.
Case studies and recent developments:
Why choose Procura?
We are specialists in procurement cost reduction. Our consultants work closely with all kinds of organisations to improve their profitability through identifying, delivering and maintaining savings in procurement expenditure. A relentless focus on bottom-line results combined with our deep supply-market knowledge ensures that spend is optimised – and stays optimised.
- Our team has achieved over £100m in savings
- Projects are self-funding with no risk for clients
- We work closely with your people to embed best practice
- Our unique spend intelligence service ensures ongoing savings