This is an important question which most Procurement Departments do not recognize as a challenge. Indirect Procurement is defined as( the purchasing of goods and services that enable your day-to-day business activities. Indirect spend can include office supplies, travel, IT services, packaging materials, equipment, janitorial services, fixtures, office furniture, and so on. These are the goods and services that are necessary for you to run your business) and not directly used in the manufacturing of your product such as Raw Material, Manufacturing Equipments, etc.Taking in consideration the rule of/ and the total value of purchases between Direct Procurement and indirect procurement, we can see great impact of savings on profit margin if Procurement can optimize its indirect procurement process.
https://www.hcmworks.com/blog/what-is-indirect-procurement-and-how-is-it-affecting-your-business
