The challenges of indirect purchasing are less in the complexity but rather in the decentralized procurement and the multitude of items and services that is processed via Purchasing only in an insufficient or non centralized manner.
As a Procurement consulting companies in India, we know that the purchase of indirect goods and services hides a large savings potential. Expenses in the indirect area usually play only a subordinate role with regard to the goal and the overall success of Purchasing – unfortunately. The expenses in the indirect area are often neglected. That’s a pity since an optimization has an immediately noticeable and short-term impact on the annual result.
The purchase processes in indirect purchasing are often managed by special departments (e.g. marketing, logistics, facility management, IT). These departments determine the specification, decide beforehand and purchase in a largely independent manner – separately from Purchasing. The influence, the competency and the levers of Purchasing often remain absolutely unused.