Manufacturing business places all indirect spend on framework
A rapidly expanding manufacturing business has decided to place all of its ‘indirect spend’ onto the Procura Solutions framework, realising significant savings and achieving an immediate impact on its bottom line performance.
The business had historically focussed its internal procurement resources on its core ‘direct’ spend (including the raw materials used to manufacture goods for sale) which accounted for around 80% of total outgoings. However, ‘indirect spend’ was still viewed as a large area where it was felt opportunities for savings were being missed. Following an initial spend analysis of indirect categories including utilities, telecoms, office supplies, marketing promotional materials, postage and franking, substantial saving opportunities became apparent by switching to the frameworks.
Following a handover phase which was managed directly by Procura, the business switched these categories onto the frameworks and was delighted to begin seeing immediate price reductions across the board.