SELF-ASSESSMENT TOOL
๐ Indirect Spend Health Check
10 warning signs your indirect costs are out of control
Instructions: Check each statement that applies to your organization. Each checked item represents a common symptom of indirect procurement inefficiencyโand potential savings leakage.
๐๏ธ
Spend Visibility
We can't quickly report total spend by supplier, category, or plant
โ Indicates fragmented data and missed consolidation opportunities
Different plants pay different prices for the same items
โ Typically 15-35% price variance exists without visibility
๐ง
MRO & Maintenance
Emergency/expedited purchases are common (more than 15% of MRO)
โ Emergency orders typically cost 40-100% more than planned purchases
We have 200+ MRO suppliers (or don't know the count)
โ Best-in-class companies have 50-75 per $100M spend
Maintenance supervisors have "their" preferred suppliers regardless of price
โ Relationship buying bypasses negotiated contracts
๐
Contracts & Compliance
We've had contracts auto-renew that we intended to renegotiate
โ Missed renewal windows cost 5-15% vs. competitive rebid
Many indirect purchases bypass the procurement process entirely
โ Maverick spend typically runs 10-25% higher than contracted
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Process & Technology
Employees order from wherever is convenient rather than preferred suppliers
โ No guided buying means lost volume leverage
Indirect invoices are processed manually with frequent errors
โ Manual processing costs $15-25 per invoice vs. $2-5 automated
We don't know our total indirect spend within 10% accuracy
โ You can't manage what you can't measure
0/10
Warning Signs Present
Click the statements above that apply to your organization
Breakdown by Area:
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