Every year, companies spend millions on indirect materials, tools, and consumables—yet many don’t realize how much of that spend is leaking due to poor tracking. McKinsey has repeatedly highlighted that transforming procurement functions can unlock 15–30% in cost savings. In this post, we break down the key findings from McKinsey and how Traceit.Live helps you take advantage of these proven savings.

Key Insight #1: Visibility is the Foundation of Savings McKinsey emphasizes that organizations with high procurement visibility outperform their peers. Without knowing what’s being purchased, consumed, and wasted, companies struggle to manage costs.

How Traceit.Live Helps:

• Full traceability from purchase to consumption

• Live inventory of tools, components, and consumables

• Identify who used what, when, and on which asset

Key Insight #2: Indirect Spend is the Hidden Opportunity According to McKinsey, indirect spend (like MRO, packaging, and office supplies) is often under-managed and under-reported. It can account for 15–20% of total spend but is typically scattered and invisible.

How Traceit.Live Helps:

• Consolidates all indirect spend categories in one platform

• Reduces maverick buying and over-ordering

• Improves compliance and budgeting

Key Insight #3: Data-Driven Procurement Delivers Results Top-performing companies use analytics and digital tools to drive decisions. McKinsey reports that digitally enabled procurement functions can reduce costs by up to 20% in just the first year.

How Traceit.Live Helps:

• Real-time dashboards for consumption and stock levels

• Automated reporting for finance and ops

• Data to support negotiations with suppliers

The Bottom Line: McKinsey’s research confirms what Traceit.Live delivers: cost savings through visibility, control, and data. If you’re not tracking your indirect spend, you’re probably losing more than you think.

Reference: McKinsey & Company. (Various Reports). Visit McKinsey on Procurement