Reducing Indirect Spend Costs
HRC Advisory has partnered with numerous retailers to achieve significant cost savings for almost 30 years by transforming their indirect procurement functions across all areas of indirect spend.
Retailers spend a significant amount of both capital and operating costs on “Indirect Procurement of goods and services.” This represents a very large, often untapped opportunity to improve earnings in both the short and long term.
Our work begins with a comprehensive assessment of each retailer’s indirect procurement spend, supplier contracts, their current procurement processes, tools, metrics, reporting and related performance. We partner directly with each client’s procurement function and its cross-functional functions to drive meaningful savings and synergies through process improvement and objective, fact-based vendor negotiations.
Creating visibility of Indirect Procurement expenditure and understanding how the expenditure is spent and the demand levers are important components of a successful transformation of Indirect Procurement.
We differentiate ourselves by:
- Working only in retail and working as a seamless extension of each client’s team
- Leveraging our retail experience and extensive pricing benchmarks
- Focusing on data-driven and fact-based decision making
- Supporting our on-site team with a dedicated in-house analytics group for complex scenario modeling and cost savings sensitivity analyses
- Working with a high sense of urgency when rapid expense savings are needed, but with a view of strengthening the client’s business in the medium to longer term