Estimated Savings Potential
Selected Indirect Commodities
(Assume $500 Mill. Indirect Spend)

Category Historical Savings Percentage Range Estimated Percentage of Total Indirect Expense (Actual Will Vary From Co. to Co.) Indicated Spending Estimated Low Savings Range Estimated High Savings Range
Building & Facilities 5 10 3.0 $15,000,000 $750,000 $1,500,000
Business Forms 10 40 1.0 5,000,000 500,000 2,000,000
Copiers 10 50 1.0 5,000,000 500,000 2,500,000
Car Rental 5 15 0.5 2,500,000 125,000 375,000
Freight 10 15 13.0 65,000,000 6,500,000 9,7500,000

Other targets available upon diagnostic of client spend.  Indirect spend has the highest vendor margins because it is outside the core strength of the company purchasing the products or services.

 



DEBOLT & ASSOCIATES
Lake Forest, IL 60045

847 219 3396