Professional Documents
Culture Documents
INDIRECT
SPEND
Dare to strategize
Barbara Lauer
suppliers
80%
20%
spend
spend
20% suppliers
80% suppliers
03
04
THE DARE:
MAKE VISIBILITY
INTO YOUR
INDIRECT SPEND
A CORPORATE
PRIORITY
05
THE DARE: MAKE VISIBILITY INTO YOUR INDIRECT SPEND A CORPORATE PRIORITY
70%
of procurement
executives cite the
indirect spend as a top
focus for controlling
and reducing cost
06
07
08
THE mission:
ELEVATE INDIRECT
SPEND TO THE NEXT
LEVEL OF STRATEGY
09
strategic approach.
10
INDIRECT SPEND
PARETO PRINCIPLE
LONG TAIL
TALENT GAP
The 20 percent of a
companys procurement
directly incorporated
80 percent of outcomes
can be attributed to
manufactured or a service
of the organizations
being delivered.
11
12
THE opportunity:
DELIVER VISIBILITY
INTO INDIRECT SPEND
TO DRIVE VALUE
AND MAINTAIN
COMPLIANCE
13
THE OPPORTUNITY: DELIVER VISIBILITY INTO INDIRECT SPEND TO DRIVE VALUE AND MAINTAIN COMPLIANCE
category strategies.
them altogether.
14
operating goals.
RFx 510%
Manage consumption
Drive competitive tension
Price negotations
Optimize talent supply chain
return
value
% saving will vary by company, strategies, and total spend
15
THE OPPORTUNITY: DELIVER VISIBILITY INTO INDIRECT SPEND TO DRIVE VALUE AND MAINTAIN COMPLIANCE
to ensure compliance.
16
Need to re-evaluate
your approach on
Indirect Spend?
Consider the following:
1
17
References:
http://www.kellyocg.com/uploadedFiles/Content/Knowledge/Report_
Content/Talent_Supply_Chain_Management_Readiness.pdf
http://www.sdcexec.com/article/11063801/in-procurement-thereis-a-difference-between-direct-and-indirect-spend-and-the-bestorganizations-know-it
http://www.procurementleaders.com/blog/my-blog--guest-blog/
is-it-time-to-outsource-tail-spend
http://www.sig.org/newsletter.php?id=5823
18
About KellyOCG
KellyOCG is the Outsourcing and Consulting Group of workforce solutions provider Kelly
Services, Inc. KellyOCG is a global leader in innovative talent management solutions in the areas
of Recruitment Process Outsourcing (RPO), Business Process Outsourcing (BPO), Contingent
Workforce Outsourcing (CWO), including Independent Contractor Solutions, Human Resources
Consulting, Career Transition and Executive Coaching, and Executive Search.
KellyOCG was named in the International Association of Outsourcing
Professionals 2014 Global Outsourcing 100 list, an annual ranking of the
worlds best outsourcing service providers and advisors.
Further information about KellyOCG may be found at kellyocg.com.