Achieving Cost Excellence in Indirect Spend
When companies think about cost excellence, they often focus on direct categories – the inputs for their core products or services. But indirect spend, from IT and logistics to professional services and facilities, typically represents 20–30% of outgoings and remains heavily under-managed. The result? Fragmented spending, missed savings opportunities, and slower competitiveness. By treating indirect spend with the same discipline as direct procurement, organizations can unlock rapid, measurable impact on profitability and resilience.
What can you take away from this article?
This article explores why indirect spend is the hidden engine of cost excellence and how organizations can capture its potential. You will learn:
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Why optimizing indirect categories can deliver faster savings than direct spend initiatives.
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The common challenges companies face – from data gaps to siloed processes – and how to overcome them.
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How centralizing procurement, aligning cross-functional sourcing councils, and embedding governance create transparency and accountability.
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Why digitalization and GenAI are set to transform indirect spend management, from automated spend categorization to AI-driven supplier insights.
The article is part of our magazine issue Achieving Cost Excellence.
In addition, you will also receive the following articles when you download the issue:
When companies think about cost excellence, they often focus on direct categories – the inputs for their core products or services. But indirect spend, from IT and logistics to professional services and facilities, typically represents 20–30% of outgoings and remains heavily under-managed.
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