The Hidden Profit Leak: Mastering Indirect Procurement
How industrial equipment manufacturers capture 12-18% savings in MRO, facilities, and operational spend.
Why It Matters
Your team negotiates aggressively on steel, motors, bearingsโthe materials that become your products. But indirect procurementโMRO supplies, facilities services, IT equipment, safety gear, professional servicesโrepresents 15-25% of total spend yet receives minimal strategic focus.
The result? Multi-plant complexity creates supplier sprawl. Emergency purchases drive 40-100% premiums. Specification sprawl multiplies SKUs unnecessarily. Auto-renewing contracts lock in unfavorable terms. For a $500M manufacturer with $100M in indirect spend, this silent profit leak costs $12M-$18M annuallyโhidden in P-cards, local POs, and invoice variances.
What Youโll Learn
- Why indirect procurement fails in manufacturingโand how multi-plant operations amplify the problem
- Category-by-category savings strategies for MRO, facilities, utilities, and professional services
- Technology enablers that create visibility and control without slowing operations
- Real-world case study: How a $400M equipment manufacturer saved $4.2M with phased implementation
Who Itโs For
Built for mid-market industrial equipment manufacturers ($100M-$1B revenue) and leaders across operations, procurement, finance, and plant management who need to transform indirect spend from a cost center to a competitive advantage.
Download the eBook to stop the profit leak and start capturing 12-18% savings in your indirect spend.
























