Procurement's Guide to Controlling Indirect Spend
Seven warning signs it's out of control.
Indirect spend accounts for 15-30% of what most organizations spend, and it likely receives the least attention. Spot the warning signs early and learn the fastest way to take back control.
- Indirect spend accounts for a large share of what you spend, yet it rarely gets dedicated oversight — and it tends to drift out of control before anyone notices
- Seven warning signs appear long before the savings shortfall does, from fragmented spend data to contracts that renew on autopilot
- Una members save an average of 18–22% across indirect categories once spend moves onto pre-negotiated contracts
- A GPO delivers immediate control without new headcount, another RFP, or replacing existing supplier relationships
- Una membership is always free with no purchasing requirements, no exclusivities, and no contract lock-in
The Spend Nobody Watches
Ask five people in your organization who ordered the branded hoodies, and you will collect at least six answers and one confession.
Nobody is sure which supplier was used, whether it was on the approved vendor list, or what price was paid because nobody was watching. That is indirect spend in a nutshell: the money your organization spends on everything that keeps the business running without going into the product.
It typically accounts for 15% to 30% of total expenditure, yet it receives less dedicated oversight than almost any other budget line. The result is fragmented purchasing, missed savings, and a slow leak that compounds quietly until finance asks where the money went.
This playbook walks through the seven warning signs that indirect spend has drifted out of control, a self-audit you can run over coffee, the categories where leakage is most common, and the fastest way to take back control without adding headcount or running another RFP.
The 7 Warning Signs
These warning signs appear long before the savings shortfall does. Every "yes" below is worth a closer look.
1.
You cannot state your total indirect spend
Ask finance and procurement for last year's indirect total and you will likely receive two different numbers, each with an apology attached. The data lives in departmental spreadsheets and card statements, so nobody with negotiating power can see the whole picture.
Flags to watch for: Budget owners quote different figures for the same category, and your finance team reconciles card statements by hand at quarter end.
2.
Two sites pay different prices for the same item
Two of your locations buy the same cleaning supplies from different suppliers at different prices. Nobody negotiated a volume discount because nobody saw the combined volume.
Flags to watch for: Invoices for the same item show different unit prices, and site managers cannot tell you which supplier they are meant to use.
3.
Employees buy from whoever they find first
People choose the supplier a search returns first and put the purchase on a card, because the approved process takes longer than the workaround. Every one of those purchases skips whatever pricing you negotiated.
Flags to watch for: Card statements list suppliers your procurement team has never heard of, and employees keep asking where the approved vendor list lives.
4.
Contracts renew on autopilot
Nobody has read the terms since the day they were signed, and each renewal notice arrives with a price increase you cannot test because you have no benchmark. Most teams accept the increase, since accepting takes less effort than researching the market.
Flags to watch for: Renewal notices land within weeks of the deadline, and nobody can point to the last time a price was checked against the market.
5.
Small suppliers keep multiplying
Tail spend, the long line of small suppliers that each cost too little to justify a sourcing event, keeps growing. An RFP for a category worth a few thousand dollars costs more than it could save, so nobody runs one and the total keeps compounding.
Flags to watch for: Your supplier list has grown beyond what anyone can name from memory, and many of those suppliers receive only a few payments a year.
6.
Your team only examines indirect spend when something breaks
Your sourcing professionals focus on direct categories because those move the product and the margin. Indirect spend gets attention when a supplier fails or a stakeholder complains, which keeps the work permanently reactive.
Flags to watch for: Indirect projects sit at the bottom of the task list until a complaint arrives, and supplier reviews for these categories have never been scheduled.
7.
Finance wants savings but you have no levers left
Targets arrive every year, and the only options on the table are asking people to buy less of what they need or researching suppliers your team has no time to research. Members often tell Una that this pressure, combined with limited time and limited buying power, is what sent them looking for help.
Flags to watch for: Savings targets rise every year while the team relies on ad hoc price pushback, and nobody owns a plan for the indirect categories.
What Indirect Spend Leaks Cost You
Say your organization spends $50 million a year in total. Indirect spend typically accounts for 15% to 30% of that, representing somewhere between $7.5 million and $15 million.
Una members save an average of 18% to 22% once categories move onto negotiated contracts, so on those numbers the potential savings run from about $1.35 million to $3.3 million a year.
Your own figures will differ, and no two categories save at exactly the average. Use the Una savings calculator to see your own version based on your actual spend.
Where Leaks Start
Some categories leak faster than others. Here is where control usually slips first, along with what Una members have achieved in each.
Category
Why It Leaks
What Members Save
Office Supplies
Everyone needs them, so everyone buys them somewhere different
49% (one member case study)
Facilities & JanSan
Each site hires its own local supplier
20% (one member case study)
Shipping
Small volumes carry little weight with carriers
26%+ (one member analysis)
Mobility
Devices and plans pile up across people and sites
30% Average
Cloud
Vendors and pricing are hard to compare
35% Average
Connectivity
Circuits and contracts accumulate across locations
25% Average
Results vary by member and category.
Running an Indirect Spend Self-Audit
Answer these honestly. Every "no" is worth a closer look. You can get through the whole list over a single coffee.
Visibility
Can you state last year's indirect total within 10%?
Do you know how many suppliers you paid?
Can you see spend by category across every site?
Buying
Do all sites pay the same negotiated price for the same items?
Is the approved purchasing route the easiest one to follow?
Do you know who is buying on cards and what they're buying?
Contracts
Do you know every renewal date at least 90 days ahead?
Did anyone compare your prices against the market this year?
Capacity
Does someone own each indirect category?
Do supplier reviews happen on a regular schedule?
Do you have time to run sourcing events for small categories?
The GPO Fix
A GPO combines the buying power of thousands of members and negotiates supplier contracts in advance, so you get competitive pricing without running a sourcing cycle of your own. Una members save an average of 18% to 22% across categories and joining costs nothing.
Getting started takes three steps.
1.
Discovery Call
You describe your categories, your challenges, and your goals. No obligation to proceed, just a 30-minute conversation to determine fit.
2.
Cost Analysis
Una compares your actual spend data with real contract terms and pricing, not industry averages. You see exactly what you'd save before making any commitment.
3.
Contract Connection
You connect to the supplier contracts that show real savings. Most members start saving within weeks. One member was buying at discounted pricing within two weeks of joining.
The cost analysis gives you the spend visibility you were missing. One set of negotiated prices ends the gaps between sites. And Una's advisors handle the category work your team never had time for. You keep the supplier relationships that already work, and you decide which contracts to use.
Your First 30 Days
You don't need a big project plan to get moving. Here is a realistic month.
Week 1
Gather twelve months of invoices, card statements, and expense reports. It will look messy, and that's fine, because a rough picture beats waiting for a perfect one.
Week 2
Sort the spend by category and site, then hunt for duplicate suppliers and price gaps. Circle the three biggest categories.
Week 3
Book the discovery call with Una and share your spend data, so the cost analysis can compare your pricing with real contract terms.
Week 4
Review the results, pick the categories with the clearest savings, and connect to those contracts. You can start with one category and add others as the savings show up.
How Other Members Did It
CASE STUDY
800 properties, one sourcing professional
A fully integrated property developer headquartered in New York manages more than 800 properties worldwide. A single sourcing professional oversaw purchasing for the entire organization — and that person's attention naturally went to direct spend, leaving little oversight for everything else.
After a discovery call and cost analysis, the developer connected to Una's contracts and started saving quickly: 18% in promotional items, an estimated $100,000 in that one category. The team is now analyzing mobility and technology categories.
"I was impressed with how quickly they got responses and answers back."Supplier Relationship Specialist, Una member
CASE STUDY
A fast-growing network with no procurement function
A network of behavioral health centers opening locations across several states had no formal procurement function. Spend in food, office supplies, and JanSan went unmanaged.
Una connected the network to national food distributors first — food costs dropped 22% within weeks. Working category by category from there, the result was an average saving of 27% across all categories: 49% on office products, 22% on food, and 20% each on uniforms and JanSan/MRO.
"The service from [the Una team] is second to none!"Hospitality Manager, Una member
Frequently Asked Questions
Will I lose my existing supplier relationships?
No. You keep the relationships that work and you decide which contracts to use. Una can work in the background when you want that, and steps in directly when you ask for help.
Do I have to commit any spend?
There are never any purchasing requirements or exclusivities. Start with one category and add more whenever the savings convince you.
What does it cost?
Membership is free to join and free to use, and it comes with a savings analysis and a dedicated account manager.
How fast will I see savings?
That depends on the category and how quickly you share your spend data, but members have started saving within weeks. One member was buying at discounted pricing within two weeks of joining.
Do I need a procurement team?
You don't. Several members joined with a single sourcing professional or no formal procurement function at all, and Una's advisors work as an extension of a lean team.
Ready to Take Control of
Your Indirect Spend?
Join Una for free and start with a savings analysis based on your own spend data. Unlock savings and tap into the hidden value within your indirect spend categories.