In procurement, it is vital review clean and organized spend data. If you’re not you’re just looking at missed opportunities to reign in spend and have a clear picture of where your revenue is going.

Direct suppliers typically represent both the biggest prizes and the “lowest-hanging fruit.” This means it can be tempting to optimize direct spend while ignoring the value that could be harvested from your organization’s indirect spending. Neglecting indirect spending is disruptive to your organization, resulting in overspending, reduced visibility, and a lack of control over the supply chain.

Procurement professionals have an enormous amount of data at their fingertips yet most struggle to make sense of it all. Good data management paves the way for additional opportunities to mitigate supply chain risks, evaluate supplier performance, and enable innovation and collaboration with suppliers via increased supply-chain transparency.

Indirect spend is renowned for being fragmented throughout the organization, operating way outside of procurement’s purview. An organization looking to improve its indirect procurement processes must focus on developing a strategic sourcing plan for both direct and indirect spending.

Find out 5 ways spend visibility is important in this video:

-Get Better Indirect Spend Visibility -Indirect Spends

-How can indirect procurement be improved?

-Indirect procurement

-What is the 80/20 rule in procurement?