Whitepaper: Direct vs. indirect procurement

Direct and Indirect Procurement

Highlights from the whitepaper

  • 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

Learn how direct procurement is different from indirect procurement

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.

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 and some key themes.


Access the research here