Expert Procurement Consulting Solutions for Indirect Spend Management

Indirect spend (IT, marketing, facilities, travel) represents 20-30% of total costs but is the least managed category. Our spend management consulting helps companies reduce indirect costs by 15-30% through data consolidation, supplier optimization, and strategic sourcing—typically delivering results in 30-60 days.

What is Indirect Spend Management?

Indirect spend includes all purchases not directly tied to your core product or service. For most companies, this represents 20-30% of total costs—yet it's the least managed spending category.

Common indirect spend categories:

• IT hardware, software, and services
• Marketing and advertising
• Professional services (legal, consulting, recruiting)
• Facilities and MRO (maintenance, repair, operations)
• Travel and entertainment
• HR services and benefits administration

Why Indirect Spend is Difficult to Manage

Unlike direct materials with clear specifications and dedicated buyers, indirect spend is:

• Fragmented across departments – Marketing buys differently than IT or facilities
• Managed by non-procurement staff – Department heads lack market knowledge and negotiation expertise
• Lacks visibility – Data scattered across ERP, credit cards, expense systems
• Uses multiple suppliers – Same service purchased from different vendors at different prices
• Operates on outdated contracts – Auto-renewals without competitive bidding

Result: Companies typically overpay 15-30% on indirect spend without realizing it. That's money left on the table every year.

If you’re like many of our clients focusing on indirect spend for savings, we can help! With over 30 years of experience, we specialize in managing indirect costs through procurement advisory and outsourced services to uncover hidden savings and enhance procurement efficiency.

Starting can be daunting, but we make it easy. Our quick spend assessment provides a roadmap for cost savings and optimization, followed by scalable, tailored solutions to implement the recommendations.

Take a peek into our approach. We’d love to hear your thoughts and discuss how we can support your goals.

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Frequently Asked Questions

What's the difference between direct and indirect spend?

Direct spend includes materials and services directly used in your product or service (raw materials, manufacturing components, resale goods). Indirect spend includes everything else needed to run the business—IT, marketing, facilities, professional services, travel, etc. Indirect spend typically represents 20-30% of total costs but gets far less management attention.

How much can we save on indirect spend?

Most companies identify 15-30% cost reduction opportunities across their indirect spend categories. The actual savings depend on current procurement maturity, category mix, and spend volume. Categories like IT, marketing services, and facilities typically offer the highest savings potential.

Do we need a procurement department to manage indirect spend?

No. Most growing companies don't have dedicated procurement teams—that's exactly why they partner with spend management consultants. We can manage the entire process for you or work collaboratively with your finance and operations teams to build internal capabilities over time.

Which indirect categories should we focus on first?

Start with categories that have:

• High spend volume (IT, marketing, facilities typically top the list)
• Multiple suppliers or fragmented purchasing
• Contracts up for renewal soon
• No recent competitive bidding (3+ years)
• Known pricing variability across locations or departments

A spend assessment helps prioritize where to focus first for maximum impact.

How long does it take to see results?

You can typically see measurable cost savings within 30-60 days on quick-win categories. Full indirect spend optimization programs run 6-12 months, but we structure engagements to deliver early wins that fund the ongoing work. Many clients start with a 4-week spend assessment, see immediate opportunities, and expand from there.

Will this disrupt our operations?

No. We work collaboratively with your teams to ensure continuity of service. Our approach focuses on better contracts and pricing—not cutting corners on quality or service levels. In fact, most clients report improved supplier performance and service quality alongside cost reductions.

What's included in spend management consulting?

Our services typically include:

• Spend data collection and analysis
• Category strategy development
• Supplier identification and evaluation
• RFP/RFQ management
• Contract negotiation
• Supplier performance management
• Implementation support
• Ongoing advisory and optimization

We tailor the engagement to your specific needs—whether that's a one-time project or ongoing retainer-based support.

How is this different from just negotiating with our current suppliers?

While renegotiating existing contracts can yield some savings, comprehensive spend management goes much deeper: consolidating fragmented spend, benchmarking pricing, running competitive processes, optimizing specifications, eliminating maverick spend, and building long-term supplier relationships. The combination typically delivers 3-5x more savings than simple renegotiation.

Ready to Optimize Your Indirect Spend?

Your indirect spend is likely costing you 15-30% more than it should. Fragmented purchasing, outdated contracts, and lack of procurement expertise mean savings opportunities go uncaptured year after year.

Our spend management consulting helps companies reduce costs across IT, marketing, facilities, travel, and other indirect categories—typically delivering measurable results in 30-60 days.

What you'll get:

• Comprehensive analysis of indirect spend across all categories
• Benchmarking to identify above-market pricing
• Supplier consolidation and optimization opportunities
• Strategic sourcing and RFP management
• Contract negotiation and implementation support
• Ongoing advisory to sustain savings

Most clients see ROI in the first 90 days. The savings identified in year one typically exceed consulting fees by 10-20x.

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