Businesses nationwide are making indirect spend a key strategic priority for cost reduction. In order to fully understand indirect spend and how it impacts your organizations efficiency and bottom line, you need to understand what all factors into it. Indirect spend is the costs associated with purchasing goods or services that in the end don’t factor into the solution your organization provides. These are items such as office supplies, travel expenses, fulfillment orders, maintenance costs, food and beverage, etc.
It isn’t uncommon for procurement to have to purchase for several different departments within an organization. It’s hard to be an expert in all of the different product and service offerings available and also fully understand what your stakeholders need to be successful.