The Indirect Spend

The Dare: Make visibility into your indirect spend a corporate priority

The Mission: Elevate indirect spend to the next level of strategic management

The Opportunity: Deliver visibility into indirect spend to drive value and maintain compliance

Direct material, advertising, strategic consulting, financial audit and outsourced services command the most attention because the other niche categories and suppliers only account for 20 percent of your total spend. Yet focusing on the 80 percent (known as the Pareto Principle) has left a management oversight gap.

To succeed in managing the indirect spend, every company needs a consistent approach—aligned with the business strategy. They need robust back office support processes to understand and analyze what is being purchased and from whom. A visible indirect spend multiplies the company’s capacity to comply, meet internal standards, mitigate risk, ensure supplier quality and move with speed.