Virtually every company has a level of Indirect Procurement, otherwise known as 'goods not for re-sale'.
Indirect Procurement consists of all the products and services a company needs to operate. This includes commodities such as Business Supplies, Printed Materials, Workwear, Personal Protective Equipment (PPE), Workspace Solutions, Hygiene, IT services and Managed Print Services.
Indirect Procurement is a pure overhead cost and while on the surface it may seem like an area of insignificance, deeper analysis shows that companies can be spending between 15-27% of their revenue on Indirect Procurement.
A recent survey conducted by Deloitte concluded that 8 out of 10 Financial Directors did not track the overall level of their Indirect Procurement. The report concluded that 70% of Chief Purchasing Officers have now identified Indirect Procurement as an area requiring significant improvement.
Companies across the UK are beginning to realise that dealing with multiple suppliers adds unnecessary complexity, cost and time pressure to their procurement process.