REPORT

The illusion of control in indirect spend

A survey of  European CPOs and CFOs

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New Efficio research reveals a stark reality: only 19% of CPOs and CFOs from Europe’s largest companies have full visibility of their organisation’s indirect spend. With indirect expenditure representing nearly half of a company’s total spend,1 business leaders are leaving significant money on the table. 

Key survey findings: 

  • The majority (85%) of CPOs, CFOs, and senior leaders say more than a quarter of their indirect spend has no financial oversight 
  • Nearly nine in ten (89%) senior leaders believe less than half of indirect spend is addressable 
  • IT and software are seen as the riskiest categories for unmanaged spend (81%) 
  • 93% of CPOs/CFOs say ‘maverick spending’ is a major contributor of cost leakage 

Read the report to:

  • Uncover the challenges of managing indirect spend and which categories present the biggest risks
  • Gain insight into how procurement and finance leaders are approaching the management of indirect expenditure
  • Learn how procurement and finance professionals plan to tackle this critical area
     
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[1]Indirect expenditure as a proportion of total spend varies considerably by industry. Based on Efficio’s data:
  • Utilities: indirect spend is typically 30–40% of total spend
  • Manufacturing: 20–40%
  • Services / tech: 60–80%
  • Healthcare: 60–80%