Indirect Procurement Diagnostic

Catalant’s Indirect Procurement Diagnostic is designed to create full visibility into an organization’s indirect expenditures, identify cost-saving opportunities, and optimize procurement strategies. By conducting a thorough analysis of your indirect spend categories—such as IT, marketing, travel, facilities, and professional services—we deliver actionable insights that allow you to:

Achieve a clear understanding of your indirect spend landscape

Identify opportunities for immediate and long-term cost savings

Increase process transparency and efficiency

Approach

Your Clear Path to Immediate and Long-Term Cost Savings

01

Create spend visibility

Collect, classify, and enrich indirect spend data. Create a ‘spend cube’ from invoice, PO and master data. Create or refine a category taxonomy and map expenses into it. Enrich datasets to enable category specific analysis.

02

Use category analytics to substantiate opportunities

Run benchmarks against internal and industry standards, assess policy strength and compliance, and evaluate suppliers to identify opportunities for cost savings initiatives. For high-potential savings categories, perform deeper category-specific analytics to create ‘reason to believe’ in initiatives.

03

Create a bankable roadmap

Our Experts deliver a customized roadmap with prioritized initiatives designed to maximize savings and efficiency. Initiatives are loaded into a PMO tool allowing prioritization and “wave 1” initiatives to be launched immediately after the diagnostic is complete.

Winning Together

Indirect Procurement Spend Analysis in Action

Spend Visibility and Analytics Optimization
More Success Stories

Problem

A CPG client’s procurement function lacked sufficient visibility into their spending, resulting in them only bringing portions of their spend to market. As a result, they were not able to run sourcing waves quickly and at scale.

Action

We supported the build of a custom spend visibility platform for the procurement function which enabled continuous analytics on spend. Armed with an updated spend cube, we ran a diagnostic to identify the highest value categories to take to market for a wave 1 sourcing sprint. Alongside that, we created an advanced analytics team inside of the sourcing function. 

Results

A custom spend visibility platform was built and put in place to support 60 users for spend analytics, as well as serve as the backbone for subsequent use cases to be built in the future. New contracts resulted in:

 

  •  $22MM of EBITDA value creation for the procurement function
  • A fully trained and enabled advanced analytics team that could self-sustain the capabilities into the future 

CPG Wholesaler

The client, providing distribution service to brick-and-mortar stores, was having difficulty scaling up or down service levels at the account level – some were over-serviced, and some under-serviced. A rapid diagnostic and decision tree of recommended adjustments at the account level gave the client a clear direction and the ability to track progress. The client saved $4MM of operational expenses in the first 12 months by implementing the optimizations recommended.

Post-Acquisition Operations Integration

A Software company acquired an enterprise business and needed to integrate and optimize direct and indirect spend and restructure operations. Conducting a rapid assessment of spend led to category strategic and integration plans, which resulted in a 20% cost savings by integrating the supplier base, leveraging new volumes, and streamlining internal demand for indirect spend.

Featured Indirect Procurement Diagnostic Experts

Featured Indirect Procurement Diagnostic Experts

Michael P.

15+ years of experience in diagnostic, strategy, and analytics initiatives

Former McKinsey & Co. Associate Partner with expertise in digital procurement, indirect expense optimization, and value capture program management.

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Natascha S.

25 years of experience in procurement and supply chain

Former Deloitte Partner, and Former A.T. Kearney with expertise in strategic sourcing, strategic procurement transformation, and complexity reduction.

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Julio R.

10+ years of experience in supply chain cost reduction

Former Deloitte engagement manager with expertise in cost transformation, supply chain optimization, and procurement.

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Find out how much opportunity our Indirect Procurement Diagnostic could unlock for you today.

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