Importance of Managing Indirect Procurement Costs Can't Be Overstated, Former CFO Says | SupplyChainBrain

Importance of Managing Indirect Procurement Costs Can't Be Overstated, Former CFO Says

May 24, 2012

While acknowledging that getting directly involved in indirect (i.e., non-production related) procurement didn't necessarily win him any popularity contests, Brust believes that CFOs need to pay closer attention to this area, particularly since it can represent as much as 20 percent to 40 percent of revenue.

Reducing the amount spent on MRO (maintenance, repair, operations) activities in particular can lead to significant savings.

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Keywords: SC Finance & Revenue Mgmt., Technology, Business Strategy Alignment, Quality & Metrics, Supply Chain Analysis & Consulting, Global Supply Chain Management, indirect spend, MRO management, maintenance, repair and operations activities

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