Indirect procurement

Whereas the major value driver in direct procurement is the volume of goods sourced (economies of scale), this lever is not really applicable with services. In indirects, the major value is in the cooperation with the stakeholders.

I can support your business by formulating category strategies which we will develop together. After determining the (historic and planned) spend of the category in hand, we compile a list of all relevant stakeholders, appraise the dynamics of the market segment in question, and evaluate the contribution the category makes to achieving strategic targets. With a holistic view on the results of such exercise, we are able to create a detailed action plan and issue bespoke key performance indicators (KPIs) to monitor performance against the objectives. If you wish, I can also help execute these strategies, making your sourcing more sustainable and more effective. As a result, buyers and stakeholders alike will be more satisfied with their work.

Another area with huge, often untapped, potential is the increase of the spend managed by procurement (Spend under Management) which is equivalent to reducing maverick buying, ie, when stakeholders purchase services on their own. This quite common behaviour in the indirect space can lead to suboptimal contracts because, for instance, standard terms and conditions have not been applied.

In combining some or all of the activities above, I also offer to design and projectmanage cost-out programmes.