The Sourcing Wizards is an initiative by procurement professionals coming under a single umbrella, offering their years of learning to the new generation organisations as well operational excellence advisory to all clients
Our team brings years of their expertise of spend management while working for best-in-class organizations in leadership positions.
Now we are available to you to ensure your procurement and sourcing capabilities are optimized and that you are getting the most value for each dollar being spent at the best possible price from your suppliers.
We serve as an expansion of your existing teams, saving you time and resources by applying our experience, tools, cross-industry best practices, and personalized solutions
What is indirect spend?
Indirect spend refers to an organization’s expenditure on goods and services which are not directly incorporated into the product or service delivered. Indirect spend can be thought of as all the supporting or overhead expenditure, whether corporate or factory/facility related.
Indirect spend is often neglected within a procurement organization and at times performed by a variety of different departments. There are few well-defined processes and fewer outcome-based metrics for indirect procurement.
However in our experience, procurement for indirect spend and non-tradable goods or services typically has a high potential for savings. When focusing on reducing costs in your company, indirect purchasing is often ignored. Optimization makes a noticeable difference and often improves profits within a very short timeframe.
For most organizations, most spend will be on direct or core materials. However, indirect spend can form a surprisingly significant value but with spend spread over a wide scope of spend categories and suppliers, and with much indirect spend managed by non-commercial functions in an organization, indirect spend is often over-looked. In retail, for example, indirect spend (or GNFR – goods not for resale) can account for one seventh of turnover, similarly in QSR industry it could reach upto 1/10 of the turnover.
What is so specific about Indirect spends?
Ground realities which endorse the above specifics
How Do We Address All Such Challenges
We have an extremely methodical approach to address the above challenges and come out with a meaningful
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