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The Hidden Profit Leak: Mastering Indirect Procurement

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How industrial equipment manufacturers capture 12-18% savings in MRO, facilities, and operational spend.

Why It Matters

Your team negotiates aggressively on steel, motors, bearingsโ€”the materials that become your products. But indirect procurementโ€”MRO supplies, facilities services, IT equipment, safety gear, professional servicesโ€”represents 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 annuallyโ€”hidden in P-cards, local POs, and invoice variances.

What Youโ€™ll Learn

  • Why indirect procurement fails in manufacturingโ€”and 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 Itโ€™s 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.

The preferred solution for world-class global enterprise

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Before You Go: Can You Afford NOT to Know Your AI Score?

The speed of Agentic AI adoption is creating two groups: those ready to outperform and those about to be left behind. Download the Index now to secure your 2026 strategy.

Procurement AI Adoption Index 2025 - 26: From Pilots to Procurement Autonomy
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CPOs are downloading this Gartnerยฎ report to validate investments, compare vendors, and shape a confident, peer-informed procurement strategy.

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Gartner Voice of the Customerโ€ S2P 2025

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