Indirect Procurement - Key Aspects
What is Indirect Procurement?
Indirect procurement are the activities undertaken to source raw materials, goods, services, and other inputs necessary to ensure a business's day-to-day running. Some of the expenses classified under indirect procurement are travel, utilities, software, computer, hardware, and every other routine expense for maintenance. These expenses pertain to an organization's internal operations and are generally managed in-house.
Companies generally have a well-defined policy to better understand indirect procurement in the context of the expenses undertaken. Specific departments source all the goods and services under the head of indirect procurement under the aegis.
“Businesses review and reevaluate indirect procurement strategies periodically to ensure that user requirements and expectations are being met, along with cost targets”.
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