Indirect Spend Management Definition

Indirect spend management (ISM) is the process of controlling and reducing an organization’s indirect expenses, which are costs that are not directly related to the production of goods or services.

Indirect spend typically includes items such as office supplies, travel expenses, and professional services. In many organizations, indirect spend can account for a large percentage of the total budget, so it is important to have a system in place to manage these expenses effectively.

There are several methods that can be used to reduce indirect spending, such as negotiating contracts with vendors, setting spending limits for employees, and creating policies to regulate expenses. ISM can also involve using technology to automate expense reporting and payments. By implementing an effective ISM system, organizations can save money and improve their bottom line.