Indirect Spend presents complex challenges but brings opportunities for increased efficiency and cost control. Managing this expense area becomes more difficult due to the nature of indirect sourcing: smaller average supplier spend, more suppliers, maverick spend, and a more complex stakeholder environment.
Profit hides in Indirect Spend. When it comes to finding and protecting that profit, there are two challenges. The first is recovering profit from under-managed spend. The second: creating a competitive advantage from the strategic management of spend.
The e-commerce explosion is leaving retailers scrambling to differentiate themselves through excellent customer experiences. Think about it. In a traditional store, a brand that focuses on offering deeply personal, nuanced services can do so through interpersonal interactions and amenities. How can you replicate that experience online? In practice, it happens with data and specialized packaging. Secondary packaging is essential here, as the strategy empowers brands to replicate a boutique-like experience when sending packages to customers.
