Why are savings on indirect spend so powerful?
Unlocking 15% on raw materials often triggers retailer renegotiation.
But what happens when you unlock 15% on indirects?
EBITDA quietly improves!
Indirect categories are:
- Off radar
- Operationally fragmented
- Data-poor
- Supplier-led
- Not often managed by procurement experts
Which means pricing discipline is often weak.
The opportunity isn’t usually dramatic, but its incremental….. and incremental across 10-20 categories starts to become material.
