Direct vs Indirect Spend Procurement is an essential part of any business and can have a significant impact on the success of an organization. In its simplest terms, direct spend procurement refers to the direct purchase of goods or services by an organization. This could include the purchase of raw materials, equipment, or supplies. Indirect spend procurement, on the other hand, is the purchase of goods or services that do not directly impact the production or sale of a product. Examples of indirect spend procurement include services such as travel and accommodation, marketing, legal, and IT services.
The distinction between direct and indirect spend procurement is important for a number of reasons. Direct spend procurement is typically more expensive than indirect spend procurement and can have a greater impact on the bottom line of an organization. It is also important to consider the degree of control that an organization has over the direct purchase of goods and