Are you spending enough time looking at your Indirect Spend?

November 7th, 2011

Better yet, do you know how valuable your indirect spend department is?

Today’s post is by Ryan Melowic; Director of Customer Services at SafeSourcing.

In the past not a lot of attention or respect was given to the buyer which was responsible for purchasing indirect spend items such as supplies and hired services.  Their products do not always have the high visibility that the spend of other departments do such as For-Sale items.

Today, businesses are realizing the cost reductions that can be achieved by the indirect spend departments. 

The indirect spend category can be just as complex and in some cases even more complex than the other categories.  An example of the complexity of the category is measuring value of the supplier and the service they provide.  The best solution for that complex issue would be a detailed understanding of the category or the market.

When given a category like Temporary Labor, buyers must understand how  fees are broken down.  As an example, some pieces of the fees cannot be controlled  or bid down as they are mandated by the State or Federal government.  If you break those fees out from the ones that can be compressed, however,  the end result of your total project will be cleaner and ultimately more successful. 

If you would like to know more about procuring Temporary Labor Services or other complex service categories, please contact a Customer Service Representative at SafeSourcing.

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