Service Offering
Indirect Procurement Diagnostic
Indirect procurement diagnostics are 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:
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
Receive 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.
Solution Spotlight: Catalant Forward Deployed Experts™
The Future of Indirect Procurement is AI-Enabled
Pair procurement expertise with AI fluency to build systems that keep costs under control.
Winning Together
Indirect Procurement Spend Analysis Use Cases
Problem
A CPG company’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
The team 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, the team ran a diagnostic to identify the highest-value categories to take to market for a wave 1 sourcing sprint. Alongside that, the consultants 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
A company 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 company a clear direction and the ability to track progress. The company 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 experts
Indirect Procurement Diagnostic Consultants
Michael Parrott
Catalant consultant
15+ years of experience in diagnostic, strategy, and analytics initiatives
Natascha Schijven
Catalant consultant
25 years of experience in procurement and supply chain
Michael Parrott
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.
Natascha Schijven
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.
Priya Kumar
20+ years of experience building indirect procurement organizations from the ground up
Former Accenture consultant specialized in logistics, inventory and category management, strategic sourcing, and process improvement.
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