Insights
How to Reduce Spend & Improve Sustainability in 5 Key Indirect Categories
See how Fine Tune customers are lowering costs and boosting sustainability across five key indirect spend categories.
There are deadlines to manage. Negotiations to navigate. Mandates to implement. Regulations to enforce. How can category managers juggle it all, especially when everything needs to be done with fewer staff, less time, and a tight budget?
On top of these responsibilities, there’s another critical directive to which category managers must pay close attention: sustainability.
Add this to the never-ending to-do list, and something has to give…right? Not necessarily. There are quick, simple ways you can bake sustainability into indirect categories to reduce carbon emissions and money.
These strategies can get you closer to achieving your sustainability goals while, most importantly, making an immediate positive impact on the environment. The actions you take today set the stage for a safer, more sustainable tomorrow.
Learn from these real examples of what Fine Tune customers are doing in five key indirect spend categories to lower costs while advancing sustainability.
How to Reduce Energy & Utilities Costs
When it comes to controlling energy costs, sustainable savings can be generated through well-known activities you probably already expect. Depending on your location, some of these actions may qualify your organization for rebates or tax incentives to further reduce costs.
Take advantage of renewable energy options offered by suppliers
Tap into green energy, including wind, solar, or even hydroelectric by working with suppliers that offer these choices. Renewable energy alternatives can lead to better pricing and lower energy expenses. If a fixed-cost plan is available, you can take advantage of that to guard against electricity price hikes over time.
Upgrade mechanical systems to more efficient models
The more efficient an HVAC system is, the less energy it typically requires. This generates significant utility bill savings. Because modern systems are also more reliable and offer longer operational lifespans, upgrades can reduce ongoing maintenance and repair costs.
Turn systems off when they aren’t in use
It’s a lesson you learned as child, and it still holds true today: Flip the switch to “off” if a piece of equipment isn’t being used. The greenest kilowatt-hour is the one that isn’t consumed. This goes for computers and printers, lights, monitors, AV and videoconferencing equipment, coffeemakers, charging stations, and much more.
How to Reduce Waste Management Costs
To boost sustainability while reducing indirect spend, waste management is a smart category to target. You can streamline operations and eliminate unnecessary expenses as you refine how waste is processed and handled.
Increase the amount of waste each truck carries per trip
By increasing payload every time a truck travels to your facility and then to the disposal or processing facility, you save money and reduce environmental impact. Reducing the number of trips may also lead to better rates.
Don’t mix recyclables and waste
Separate recyclables from waste onsite before it’s picked up for disposal to pay less in landfill fees and divert recoverable resources from waste streams. You may also be able to take advantage of rebates offered by recycling facilities.
Right-size waste containers and service frequency
Oversized containers could lead to overpaying. Choose containers that are the right size to handle your waste production so you pay only for what you need. If you can reduce pickup frequency, you can lower costs even more (and decrease carbon emissions at the same time).
Install waste-monitoring equipment
Sensors can monitor and report on how much waste is in your containers 24/7 so your provider knows when you need service. This reduces labor time and eliminates the financial and environmental implications of putting underutilized trucks on the road to haul away half-full containers.
How to Reduce Uniform and Floor Mat Costs
As recurring and predictable expenses, it pays to optimize costs in this area to reduce indirect spend. The changes you make to keep uniform and floor mat costs in check may reduce your environmental footprint, too.
Align days worked with garment requirements
When employees have the right number of uniforms to cover the days they work, you won’t pay for garments and laundry services that aren’t needed. For example, if wearers have 13 uniform sets but work five days per week, consider eliminating two sets of shirts and pants per person. This lowers labor costs, decreases waste, and reduces the environmental impact of cleaning and maintenance.
Clean floor mats less often
How often do your floor mats need to be cleaned and replaced? Based on foot traffic, consider reducing how often your mats are collected, serviced, and returned. For example, would monthly vs. weekly service work? If so, you could lower indirect spend and reduce water and energy costs associated with maintenance.
How to Reduce Security Costs
Opportunities to reduce costs and environmental impact may not be as obvious when analyzing indirect spend for security services, but there are viable options to consider.
Look into patrol hybrids, EVs, or electric golf carts
Security providers that use alternatives to gas-powered patrol vehicles may mean more competitive rates or savings that can be passed on to you (elimination of fuel surcharges, for example). Meanwhile, the environment reaps the benefits of lower-emissions vehicles.
Consider remote security monitoring
With remote security cameras and monitoring in place to supplement or replace patrols, you can reduce onsite personnel costs and minimize the carbon footprint associated with transportation and onsite service. Remote monitoring capabilities may also offer lower rates compared to fully staffed options.
How to Reduce Pest Control Costs
Getting wasteful practices under control helps you balance cost-savings measures with sustainability goals, reducing environmental damage and the risk of overapplication.
Seal holes and racks
By proactively addressing the entry points pests use to access your facility, you can improve pest management without applying pesticides. This reduces the need for repeated treatments and lowers services costs—and the need for frequent visits from your provider.
Reduce pesticide applications
There can be many benefits to reducing the number of times your pest control provider visits your property. Reducing material and labor costs not only optimizes indirect spend but also eliminates frequent travel to your site for applications. If possible, consider the financial and environmental impacts of moving from monthly to quarterly service.
Choose natural pesticide products
Incorporating safer, more natural pest control options over traditional chemicals can be a more sustainable and cost-effective approach. Because they’re safer and easier to handle, these products can be less labor intensive, which lowers fees. And because they’re less toxic, they also support a healthier ecosystem.
Indirect expenses like energy & utilities, waste & recycling, uniform rental, security & guard services, and pest control, offer untapped potential not only for savings but also to align purchasing with sustainability goals.
Fine Tune helps procurement teams optimize their complex indirect expense programs to maximize savings while protecting the environment. Making the right procurement decisions can streamline processes, keep costs in check, and contribute to sustainable strategies.