Controlling indirect purchasing is an increasingly popular topic, as it offers highly lucrative potential that can be tapped by managing total spend.
Purchasers use the term “indirect purchasing” to describe the procurement of all materials that are not used in the production process. In most companies, indirect purchasing accounts for between a quarter and half of total spend. In non-manufacturing companies, this proportion is significantly higher. This is a tricky task for purchasing, as it often lacks the experience and key figures such as changes in material costs and the use of framework agreements from direct purchasing.
You can read about how to bring the specific performance of purchasing in this area to light on page 32 of the October issue of Beschaffung-Aktuell (2016).