Hubzone Depot 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 into manufacturing products, such as coffee beans or other raw materials. Indirect spending covers everything else that doesn’t go into a product. Examples include office supplies, cell phone service, janitorial supplies, fuel for vehicles, and computer peripherals. The difference between indirect and direct spending is that indirect costs don’t affect what you are producing, allowing you to treat them like commodities and perform cost analysis. According to a CAPS research study, indirect spending accounts for an average of 50 percent of business costs. Indirect spending is Hubzone Depot’s focus.

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 in our select categories.

Experience

Our team comprises experts with over 10 years of procurement and sourcing experience on average. Hubzone Depot’s data scientists, procurement specialists, operations managers, database programmers, and executives have been hand-selected from leading Fortune 500 companies. To secure “Best in Class” programs, we have recruited pricing analysts from major suppliers who know their product category from the sell side. We support that knowledge with client advisors who 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.

Commitment

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 results from an intense RFP process that clearly identifies the supplier offering the optimal solution in the marketplace. We act as an extension of our client’s resources and work diligently to create programs that typically exceed what any one company can obtain on their own. We combine these program offerings with a World-Class customer experience.

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 use.

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.

Hubzone Depot offers tailored procurement solutions that help you stay on top of indirect spending. By continuously analyzing market trends and supplier performance, we ensure our clients receive the best value and service. Explore how Hubzone Depot can transform your indirect spending strategy and drive significant savings.