INDIRECT SPEND MANAGEMENT
Spend on indirect – i.e. non-production related – goods and services is often not under control.
Because everyone in your organisation thinks they’re a buyer when it comes to office stationery, copiers, training services, software, spare parts, and so on.
But while they may understand what they want, they rarely know how to manage the supply base and extract the best value from the consolidated spend on each of these categories.
I look into the high level numbers to get an overview of what you’re spending, usually taking the invoices that accounts have paid over the last 12 months or calendar year as a baseline.
Basic data cleaning also forms part of this exercise. Otherwise: garbage in = garbage out!
From there, I’ll identify any areas where there are opportunities to implement preferred suppliers, or regulate the type items which can be purchased, or to renegotiate / put out to tender any existing contracts, or implement policies to control excessive consumption.
Also refer to Contracts Management services for a deep dive into existing contract terms with your supply base.
You then have 2 potential routes:
I can then either stay at your request to execute the implementation of these savings opportunities and put systems in place to ensure your data remains clean, or I can hand over to your in-house team for the implementation phase.
If you’re budget conscious, then I can also act in an advisory role to mentor in-house staff for this final step in your journey to increase your bottom line!
What Does It Cost?
It’s impossible to quote precisely before getting an idea of the size of the task. This is usually possible with a bit of preparation work together on video calls, which enables me to quote a firm price before any on-site sessions are planned.
As a rough guide, one full week on site with your team will typically cost from €2,999 + travel expenses, assuming outward travel on Monday morning and homeward travel on Friday afternoon.
How Does The Guarantee Work?
If the total savings I identify from the exercise don’t cover the costs of my fees, then I don’t charge for my services. It’s that simple.
My job is to deliver you savings.
If I can’t provide a credible roadmap to deliver what I’ve set out to do, all I will bill you for is any travel related expenses.
What Do You Bill For Travel & Expenses?
Where possible, I try to keep my T&E below EUR 100 per hotel night and EUR 50 per day for meals and incidentals. I prefer to stay in smaller hotels or Airbnbs to be honest!
In expensive cities like London, Zürich, Amsterdam and Paris, we all know this is unrealistic, so expect higher.
Flights depend on how much in advance I book them, so you as the client get to control this to a large extent. I don’t mind flying Ryanair and Wizzair. I use them when I go on holiday, so why shouldn’t I for business?!
I invoice all travel expenses at actual cost + 10%.
The 10% covers the cost of my superhero Virtual Assistant, who enables me to avoid doing spade work like booking travel, so as I can spend more time helping clients.
Flights assumed to originate and terminate in Sofia, Bulgaria (my home base) unless several assignments can be combined into one trip.
Can You Offer Ongoing Support?
Yes, I definitely can!
We can discuss a package to be your on demand Procurement Director. This would typically be a virtual service, other than scheduled follow-ups in person 2 or 3 times a year. Click here for more details.