Savings on indirect spending
28 August 2012
Q: We have met all of our savings targets by focusing on direct costs and have made some progress with indirect costs (for example in stationery), but would like to identify any opportunity in services and other corporate expense. Where are the major oppo
A: Ed Ainsworth, director of consultancy 4C Associates, writes: Many organisations are wrestling with this issue. Most purchasing groups have the skills, resources and history to deliver large savings in direct costs but find it difficult to make progress in indirect cost areas. However, in most companies, indirect goods and services...