While Chief Procurement Officers (CPOs) remain under relentless pressure to show sustainable savings, most procurement organizations overlook the bottom of the spend food chain. This stems from limited resources and the belief that that savings percentages and opportunities diminish as spend value increases.
However experience shows that focusing on indirect spend between $10,000 and $150,000 can actually yield savings of up to 20%. Companies that employ rigorous sourcing processes, specialized expertise and analytics-based change management are leading the way to transformational cost reduction. For instance, a Fortune 500 global security software corporation has notched up to $40 million in savings with a 500%+ return on investment through tactical buying.