The seismic shifts caused by the pandemic have left an indelible mark on companies worldwide, offering a compelling case for procurement teams to reassess their indirect spend. As we transition into the new normal, the need to revisit and scrutinize every aspect of procurement, especially the indirect spend categories, has never been more pressing. The burgeoning question remains: Is your organization's procurement strategy attuned to this change in tide?

Changing Needs in Indirect Spend Categories

With remote and hybrid work remaining prevalent and digital transformation accelerated, the pandemic has ushered in a new set of priorities and reshuffled the hierarchy of needs within indirect spend. As a result, categories like office supplies, managed print services, printer hardware and printer supplies that once took a backseat may now be at the forefront, necessitating a thorough analysis of where funds are being allocated and whether these expenditures still serve the company's best interests in the altered landscape.

Hybrid and Remote Work is Here to Stay

Despite what historically had been a slight YoY decline in printer cartridge use, the COVID-19 pandemic brought around a resurgence in printing needs worldwide. In fact, the global printer cartridge supply market was valued at just $4.68B (USD) in 2022, and has expected growth of 6.15% by 2029, reaching nearly $7.11B (USD). The rise in demand not just for printer toner - but also sustainable solutions for printer hardware itself and printer cartridge supplies too - is not surprising as remote work is still a norm for many businesses even post-pandemic.

According to Forbes Magazine, "the percentage of U.S. companies offering flexibility increased from 51% at the start of 2023 to 62% around November. While 2024 might see little change in work-from-home levels, it will kick-start a revolution—one where working from home is 5x more common than 5 years ago in 2019. Furthermore, tons of smaller and faster-growing companies will adopt flexible working patterns, whether it’s structured hybrid work or a fully remote job, in order to attract and retain top talent. The caveat being that flexible work refers to how people work rather than where they work."

It's Time to Review Supply Contracts

Contracts inked before or during the early stages of the pandemic may not adequately capture current needs or market conditions. It's critical to re-examine these agreements as they come up for renewal. Renegotiating terms, conditions, and pricing to mirror today's reality can be a synergistic exercise that fosters stronger supplier relationships and optimizes value—a strategic imperative rather than a mere tactical maneuver.

Identifying Cost Savings Opportunities

    Beyond contract renegotiation lies the broader opportunity to strategize for greater cost efficiency. Procurement specialists need to harness data analytics and market intelligence to uncover latent savings. Combing through indirect spend with a fine-tooth comb can reveal areas to consolidate suppliers, enforce policy compliance, and leverage volume for better pricing.

The pandemic highlighted the fragility of global supply chains. One of the pivotal lessons learned has been the undeniable importance of supplier resilience. Supporting and cooperating with suppliers to fortify their agility isn't just beneficial—it's crucial. This focus will pay dividends, from ensuring continuity of operations to mitigating risks in an uncertain economic climate.   

The clarion call for procurement teams is loud and clear: the post-pandemic world demands a fresh, incisive look at indirect spend categories. There's an urgent need to adapt procurement strategies to the new realities and challenges that businesses face today. It's time for procurement professionals to take stock, innovate, and lead their organizations towards a procurement transformation that is poised for the future.

In the new normal, procurement's mandate is to pivot and thrive, turning indirect spend into a strategic asset that delivers competitive advantage and drives business resilience. So, seize the moment to reappraise, adjust, and advance. The future awaits those willing to embrace change and rethink the status quo.

At Quality Imaging Solutions LLC, we are passionate about providing unique solutions beyond simple cost savings to our corporate clients for their printer hardware, managed print service and printer cartridge needs. We are proud to be a state and federally certified WBE and DBE with the WA State OMWBE, and a WBE and WOSB through the WBENC. QIS also holds multiple sustainability certifications through GreenCircle Certified for our remanufactured inkjet and toner cartridge supplies.

We look forward to providing you with what it takes to print your message and advising how to do it for less. Reach out, we love to talk about toner!