In today’s cost environment, indirect spend is finally getting the attention it deserves. At Pare, we’re seeing more and more food manufacturers with dedicated “Indirect” or “Goods not for Resale” procurement teams, which is fantastic! It finally feels like the drum banging is getting heard!

And for many food manufacturers, it’s long overdue.

Because unlike direct costs, indirect spend often flies under the radar.

It hides in:

• Courier spend that’s grown without clear control or consolidation
• Lab spend; micro and chemical testing testing, sampling & external services creeping up without review
• PPE and janitorial ranges that have expanded well beyond what’s actually needed
• Chemicals and effluent costs that have increased gradually, often without challenge
• A long tail of suppliers with limited oversight

Individually, these costs don’t always stand out.

But collectively? They create significant drag on margin.

Especially now.

We’re seeing more businesses ask difficult but necessary questions:

→ Do we really understand where our indirect spend is going?
→ How much of it is driven by legacy decisions?
→ Where are we paying for complexity without realising it?

Simplification in indirect spend isn’t about cutting corners. It’s about removing inefficiencies. And right now, that shift is becoming critical.