Indirect procurement covers the goods and services a business needs to operate but does not directly incorporate into the product it sells. Examples include office supplies, software, facilities, professional services, maintenance, travel, and marketing purchases.
How does Indirect procurement work in practice?
Indirect procurement manages goods and services that support the organization rather than becoming part of the product sold. Demand often comes from many functions and may be fragmented across locations. The operating process therefore needs clear buying channels, category ownership and approval rules so routine purchases do not bypass contracts or create excessive supplier administration.
Quick reference for Indirect procurement
| Check | What it means for the transaction |
|---|---|
| Category | Procurement and sourcing |
| Record to keep | Keep the requirement, requester, supplier response, evaluator and approval together when they apply. |
| Do not infer | Do not treat a sourcing record as a purchase order, invoice or proof of delivery unless that later document has actually been issued. |
