SELF-ASSESSMENT TOOL
🔍 Indirect Spend Health Check
10 warning signs your indirect costs are out of control
Instructions: Check each statement that applies to your organization. Each checked item represents a common symptom of indirect procurement inefficiency—and potential savings leakage.
👁️
Spend Visibility
We can't quickly report total spend by supplier, category, or plant
→ Indicates fragmented data and missed consolidation opportunities
Different plants pay different prices for the same items
→ Typically 15-35% price variance exists without visibility
🔧
MRO & Maintenance
Emergency/expedited purchases are common (more than 15% of MRO)
→ Emergency orders typically cost 40-100% more than planned purchases
We have 200+ MRO suppliers (or don't know the count)
→ Best-in-class companies have 50-75 per $100M spend
Maintenance supervisors have "their" preferred suppliers regardless of price
→ Relationship buying bypasses negotiated contracts
📋
Contracts & Compliance
We've had contracts auto-renew that we intended to renegotiate
→ Missed renewal windows cost 5-15% vs. competitive rebid
Many indirect purchases bypass the procurement process entirely
→ Maverick spend typically runs 10-25% higher than contracted
⚙️
Process & Technology
Employees order from wherever is convenient rather than preferred suppliers
→ No guided buying means lost volume leverage
Indirect invoices are processed manually with frequent errors
→ Manual processing costs $15-25 per invoice vs. $2-5 automated
We don't know our total indirect spend within 10% accuracy
→ You can't manage what you can't measure
0/10
Warning Signs Present
Click the statements above that apply to your organization
Breakdown by Area:
📊 Want to Quantify the Opportunity?
Get a free spend analysis to calculate your specific savings potential
Request Free Analysis →Experience our Agentic AI platform
Unlock Deep Value Procurement AI
with Zycus
Schedule your demo today!
