CenterPoint is committed to delivering extensive category expertise to our members. When it comes to business costs, there are two types of expenses: direct and indirect. Direct spending applies to supplies that go directly to manufacture products, such as coffee beans or other raw materials. Indirect spending is just about everything else that isn’t going into a product. Some examples include office supplies, cell phone service, janitorial supplies, fuel for vehicles and Computer peripherals. The difference between indirect and direct spending when it comes to your business is that indirect costs don’t have an effect on what you are producing. That means you can treat it like a commodity and do cost analysis. According to a CAPS research study, indirect spending accounts for an average of 50 percent of business costs. Indirect spending is CenterPoint’s focus.
We focus on a specific set of categories to provide the best procurement solutions for our members. Instead of offering hundreds of areas with limited expertise, our team offers clients extensive and unparalleled knowledge for our select set of categories.
Our team is comprised of experts that have “on average” over 10 years of procurement and sourcing experience. CenterPoint’s data scientists, procurement specialists, operations managers, database programmers and executives have been hand selected from leading Fortune 500 companies. In order to get secure “Best in Class” programs, we have recruited pricing analysts from major suppliers that know their product category from the sell side. We support that knowledge with client advisors that understand the inner workings of a procurement department from the buy side. This combination has helped to deliver a 96% success rate on measurable savings for our clients
With our laser focus, our experts are dedicated to digging deep and finding the best suppliers, pricing, terms and conditions for our clients. We know our categories inside and out. Each of our Group Purchasing Contracts are the result of an intense RFP process that clearly identifies the supplier that offers the optimal solution in the marketplace. We act as an extension of our client’s resources and we work diligently to create programs that typically exceeds what any one company can obtain on their own. We combine these program offerings with a customer experience that is World Class.
With indirect spending, your company is in control. With a supply such as paper, for instance, competition is fierce. If you are unhappy with your supplier, it isn’t difficult to find someone new, and there is a field of different suppliers and prices. Additionally, many suppliers use the same manufacturer, so your quality will be consistent no matter who you are using.
However, often these expenses are the types that get put on auto-pilot. Not a lot of thought goes into choosing a paper or janitorial supplier, and it’s treated like a one and done deal. However, some of these costs equal a significant amount of your business and should not be taken for granted. Be proactive in negotiating your prices and constantly evaluate your situation.