With markets growing more competitive and inflation driving up operating costs, organizations across sectors are under pressure to tighten their expenditures and improve margins. In response, many have turned their attention to strengthening indirect procurement, an often overlooked and under-managed function that can represent a substantial portion of operating expenses and present untapped opportunities for efficiency.
Indirect procurement—also known as indirect spend—includes goods and services that support business operations but aren’t directly tied to core offerings. Purchases within this category can range from utilities and outsourced IT management to travel and office supplies.
This broad scope and fragmented nature often create unique challenges in managing indirect procurement. Dealing with multiple business owners and rogue purchasing can lead to a lack of visibility and increased risk.
