Direct v indirect procurement - market intelligence survey findings and whitepaper
Mar 1, 2011 3:42:00 AM
The purpose of this research was to find out the perceived differences between the procurement of direct and indirect products and services. It has revealed some fascinating results for procurement professionals.
All businesses have indirect procurement. Our research shows that it is unambiguously different to direct procurement. Understanding that it has smaller average supplier spends, more suppliers, maverick spend and a more complex stakeholder environment than directs helps all CPOs think about their approach to indirects.
The journey to fundamentally improve indirects is a different path to the core procurement of an organisation. It requires a different balance of disciplined processes and technology, engagement with stakeholders and diverse expertise across a range of suppliers. We are very excited about the output of this research. We hope it will make all procurement professionals think about what goes on around them, and realise that we share many challenges.
Overview of the Whitepaper:
- Around 250 buyers took part from all sectors of the economy
- The average annual spend among the participating organisations is £940,623,000
- The average annual indirect spend among the organisations is £320,424,000
- The profession is gaining ground in non-traditional indirect areas including marketing and professional services
- The study was conducted in association with Supply Management