Indirect Procurement

Improve your indirect spend management and save money on essential business items

When it comes to direct spend, the purchase of goods and services directly related to a company’s core business, procurement professionals exercise the tightest control. These purchases are usually centralized and are guided by strict protocols and procedures.

However, when it comes to indirect spend, the purchase of goods and services related to the day-to-day operations of a company, control may be more diffuse. Indirect spend may apply to office supplies, cleaning and sanitation products, uniforms, utilities, software, computers, and more.

Indirect spend is the least managed aspect of procurement, even though it can have a tremendous impact on your bottom line. Purchasing operational products and services is often a manual procedure; decentralized, fragmented, and with little management oversight. This can wreak havoc on your finance and procurement teams, costing the company time and money. For this reason, an increasing number of companies are finally giving indirect spend the attention it deserves.

Kick-start Your Purchasing Power

Saving you money on products you already purchase

We offer pre-negotiated procurement programs that enable businesses in any industry to buy the indirect goods and services necessary to perform day-to-day operations with the purchasing power of a Fortune 500 company.  

We’ve removed the obstacles to secure higher levels of savings by aggregating your buying volume with other businesses like yours. Our indirect procurement programs bring you:

  • Significant positive impact by lowering your purchasing costs
  • Control of your suppliers without the burden of contract administration
  • Better insight and visibility of your company’s spend habits
  • Less off-contract purchases
  • Time savings for invoice processing

Your everyday spend is costly

The costs of doing day-to-day business is much higher than you might anticipate…up to 40% of your total spend! Yet it is the least managed portion of company spend. The reality is that every dollar in indirect spend that is brought under control represents savings of up to 25 percent. Likewise, a lack of control over your indirect spend can result in missed opportunities.

Sourcing and administering indirect spend programs on your own can be challenging. We often see individual businesses struggle with:

  • Difficulty securing better supplier pricing and meeting cost containment goals
  • Controlling the number of suppliers for individual product categories
  • Poor program compliance among buyers
  • Lack of resources to monitor contract compliance and manage supplier relationships
  • Time wasted on resolving invoice disputes and administrative issues
  • Working with your Finance department to create strategic value
  • Unmanaged maverick or tail spend

The cost reduction team at Source One, a Corcentric company, produces savings through a contingency-based support model. Source One’s cost reduction experts are uniquely skilled, uniquely experienced, and uniquely dependable. They’ll never collect payment on soft dollar savings, and they won’t make a cent unless they generate cost reduction for your Procurement team.

What is tail spend?

Some refer to it as maverick spend or rogue spend. We refer to it as dark purchasing, that category of “hidden” non-PO spend that is difficult to track and sometimes harder to control. These purchases are often made by personnel outside the structure and guidelines set by procurement. Employees may think the product they require is too small monetarily to consider. But add up all of these “small” purchases across the entire enterprise and the amount can be considerable. Exactly how considerable? You won’t know until you are able to assess the true cost of your tail spend.

Our experts work with you to identify where inefficiencies currently exist and how best to streamline your processes. With the Corcentric partnership, you will have greater control over your indirect spend and your procurement team will have more time to focus on strategic activities.

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How Corcentric Indirect Procurement works


We provide programs across all key indirect spend categories:

  • Office equipment and supplies
  • Maintenance, repair, and operations supplies
  • Chemicals
  • Facilities management
  • Janitorial
  • IT hardware and software
  • Professional services
  • Telecom services
  • Uniform services
  • Passenger and light truck tires
Related Resources VIEW ALL RESOURCES

The Hidden Opportunity in Your Indirect Spend

A comprehensive look at the inefficiencies that exist in many procurement processes.

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Defeating Dark Purchasing

Getting control of your procurement could mean savings of up to 25%.

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