Managing Indirect Spend. Enhancing Profitability Through Strategic Sourcing. Wiley Corporate F&A

  • ID: 2209724
  • Book
  • 464 Pages
  • John Wiley and Sons Ltd
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Enhancing Profitability Through Strategic Sourcing

"We pay how much?!"

The story is the same at most companies. CEOs, CFOs, and other executives finally decide that it′s time to take a closer look at what they pay for the goods and services required to keep their businesses running. It could be office, telecommunications, insurance, or marketing materials. Indirect spend spending not directly tied to the creation of a finished product or service can make up 40 percent or more of an organization′s total expenses.

Providing tools to help drive savings as well as a step–by–step presentation of the strategic sourcing process, Managing Indirect Spend provides you with the knowledge and necessary tools to successfully reduce costs in the area of indirect spend. Based on the authors′ more than 20 years of consulting experience, the processes and real–world examples presented in this book illustrate how to successfully implement cost reduction strategies for clients of all sizes, in just about every industry and in hundreds of spend categories.

Featuring contributions by notable sourcing professionals, Managing Indirect Spend offers in–depth discussion of:

  • Data collection and analysis
  • The best–kept secrets of procurement tools
  • Little–known free technologies that help you source more effectively
  • Scorecarding suppliers
  • What not to do during a strategic sourcing initiative
  • Office supplies and the sourcing process
  • How cell–phone management drives continuous cost savings

Moving away from the status quo can be difficult, but it is not impossible. From controlling administrative costs to managing expenses for facilities, finance, marketing, and IT, Managing Indirect Spend shows you how effectively managing indirect costs can make a huge impact on bottom–line growth. Discover ways to cut corporate costs without reducing headcount with the proven guidance found in Managing Indirect Spend.

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Preface xi

Acknowledgments xvii

Introduction: What Is Indirect Spend, and How Does One Manage It? 1


Chapter 1: An Introduction to Strategic Sourcing 9Joe Payne

Chapter 2: Data Collection and Analysis 15Joe Payne

Chapter 3: Conducting Research 47Joe Payne

Chapter 4: The RFx Process 63Kathleen Daly

Chapter 5: Scorecarding Suppliers 89Kathleen Daly

Chapter 6: Negotiations 103Joe Payne

Chapter 7: Get It in Writing 121Joe Payne

Chapter 8: Implementation and Continuous Improvement 145Joe Payne

Chapter 9: What Not to Do During a Strategic Sourcing Initiative 167William Dorn


Chapter 10: The Importance of Market Intelligence 191William Dorn

Chapter 11: Tools to Assist You in Gathering Data and Expediting the Sourcing Process 207William Dorn

Chapter 12: Increasing Stakeholder Engagement 231David Pastore


Chapter 13: Supplier Collaboration 245William Dorn

Chapter 14: Leveraging Supplier Feedback 255William Dorn

Chapter 15: Data Analysis 263David Pastore


Chapter 16: Offi ce Supplies and the Sourcing Process 277Jennifer Ulrich

Chapter 17: Negotiating Local and Long–Distance Telecommunications Services 299David Pastore

Chapter 18: How Cell–Phone Management Drives Continuous Cost Savings 315William Dorn

Chapter 19: Getting the Best Small Package Rates 339William Dorn

Chapter 20: Making Sense of MRO Spend 355Kathleen Daly

Chapter 21: Analyzing Shipping Costs 381Joe Payne

Chapter 22: Sourcing Services 401Jennifer Ulrich and Scott Decker

About the Authors 423

About the Contributors 425

Index 427

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JOE PAYNE, Director of Strategic Sourcing, Source One Management Services, is an experienced consultant who has helped many companies reduce costs and manage change. He leads a team of project managers and analysts, developing insights into the challenges organizations face when undertaking initiatives to reduce costs in the area of indirect spend.

WILLIAM R. DORN, JR., Director of Operations, Source One Management Services, is a certified Six Sigma Black Belt with extensive experience in large–scale projects for Fortune 500 companies and the federal government. His expertise includes business analysis; mechanical and manufacturing engineering; business process reengineering; risk analysis; and technology design, acquisition, and implementation.

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Note: Product cover images may vary from those shown