Energy, corporate services, and corrugated packaging often receive less procurement attention than other categories. Learn where buyers can uncover savings, reduce risk, and improve supplier management.
A buyer completes a market test and identifies significant savings. The analysis is solid. The recommended supplier meets the documented requirements. Then the stakeholders refuse to change suppliers. This happens too frequently. The buyer starts by evaluating the supply market and approaches stakeholders after finding an opportunity. By then,…
Indirect purchasing teams in manufacturing companies don’t get much recognition. Direct material savings are usually easier to measure. A buyer negotiates a lower part price. The savings flow into product cost. Finance can see the impact. Indirect purchasing is different. The work is spread across facilities, functions,…
Indirect purchasing is messy by nature. A direct materials buyer may focus on a handful of categories tied to a production process. An indirect buyer often manages dozens of unrelated categories at the same time. Marketing services. MRO. Fleet. Travel. IT. Janitorial. Temporary labor. Capital…
Capital projects carry high stakes. They consume large budgets. They affect capacity. They influence customer commitments. And once work starts, reversing a bad decision is expensive. Many capital project failures do not start in the field. They start in the contract. If you want fewer surprises, focus on three contract…
Indirect spend categories like temp labor, packaging, freight, and capital equipment are notorious for hiding savings in plain sight. Experienced indirect buyers have learned that cost tables transform the way organizations manage these categories. Here’s how you can leverage cost tables to drive real results. Why Cost Tables Matter Indirect categories are complex. They often involve dozens of…
Indirect market tests rarely go smoothly when the Statement of Work is unclear. When requirements are vague, suppliers make assumptions. Quotes come back inconsistent. Performance varies across sites. Internal customers complain that the supplier “isn’t doing what we hired them to do,” and the supplier…
When most organizations think about sourcing strategy, they typically focus on direct materials, where strategic sourcing initiatives are well-established and commonly used to implement category strategies. Indirect categories like IT, facilities, logistics, marketing, and MRO are often left behind because they are decentralized, complex, and…
When it comes to indirect spend, purchasing leaders face a different challenge than with direct materials. With so many stakeholders, it’s important to understand their needs related to the category. There’s also a need to understand how the company’s strategic plan translates into needs for…
Corporate services can be one of the hardest areas for indirect buyers to manage. This category covers everything from facility management and payroll to legal services, marketing, recruiting, and software licenses. Each area has its own complexities, stakeholders, and cost drivers. You’re expected to drive…