Potential savings in indirect procurement
Indirect procurement remains a black box in many companies – characterized by high effort, little control, and hidden costs. Yet, it often holds significant savings potential. CFOs who analyze processes and structures can specifically uncover optimization opportunities and achieve lasting cost reductions.
The most important points in brief
- Indirect procurement is characterized by decentralized processes and a lack of transparency
- CFOs and purchasing managers often underestimate the hidden costs in this category
- Standardization, clear procurement strategies, and external support can save up to 30% on process costs
- Providers like FACURA take over operational tasks and reduce maverick buying – without interfaces or system changes
What is meant by indirect procurement – and why is it relevant for CFOs?
In contrast to direct procurement (production materials, raw materials), indirect procurement encompasses all goods and services that do not directly contribute to value creation. Examples:
- Office supplies, IT accessories, software subscriptions
- Consulting services and training
- Special requests and one-off orders
This area is particularly relevant for CFOs because it is often not the focus of strategic procurement, involves a high number of individual processes, and generates disproportionately high process costs relative to order value.
Studies show that indirect procurement accounts for over 20% of total purchasing volume in many companies – with significantly higher management costs per euro.
Typical weaknesses and hidden costs in indirect procurement
- Maverick buying: Purchases made outside defined processes and budgets
- Too many creditors: Every requirement leads to a new supplier
- Unclear processes: No standards for inquiries, orders, and invoices
- Lack of transparency: No central overview of expenditures
- High transaction costs: A simple order can cost €80–120 internally
How CFOs can identify savings potential in indirect procurement
Anyone wanting to uncover potential savings should start with a structured analysis:
- Which departments order what – and from whom?
- How many creditors were created in the last 12 months?
- Which orders had a net value below €1,000?
Typical quick wins:
- Reduce the number of creditors by 50–70%
- Bundle similar requirements (e.g. IT accessories)
- Introduce standardized ordering processes
- Avoid credit card payments with high coordination effort
Key figures include processing costs per order, number of creditors per category, and the share of maverick buying.
Optimization strategies: Standardization, bundling & external partners
| Measure | Effect |
|---|---|
| Reduce creditors | Less effort in accounting & auditing |
| Standardizing processes | Fewer questions, clearer processes |
| Introduce approval workflows | Avoiding uncontrolled spending |
| Use purchasing service providers | Save time, increase efficiency |
How FACURA can help
- Single-creditor model: One supplier in the system, unlimited purchasing options
- No system change required: Works via ERP or email
- Standardized documents: Uniform invoices, delivery notes and quotations
- Purchase on account: No credit cards or PayPal required
- No implementation costs: Start without interfaces or additional software
Especially for orders below €1,000, FACURA processing is significantly more cost-efficient than internal handling – while maintaining full control for CFO teams.
Conclusion: More transparency, less effort – this is how CFOs benefit in the long term
CFOs who consistently analyze indirect procurement often quickly identify significant savings potential. The key lies in:
- Increasing transparency regarding spending and processes
- Establishing clear standards across all departments
- Outsourcing low-value tasks in a targeted and efficient manner
FACURA provides support precisely at this point – without system disruption or lengthy project durations. This makes indirect procurement predictable, cost-efficient, and controllable.