Building a Successful Strategic Sourcing Program for Indirect Materials


Indirect spending historically has been a thorn in the side of many procurement organizations. Often comprised of high-volume, low-dollar purchases or specialized one-off items or services purchased locally across an enterprise, indirect spending can amount to as much as 50 percent of a company’s spend, according to CAPS Research reports. Yet CAPS has noted that a large share of spending for indirect goods and services frequently takes place outside an enterprise’s formal sourcing and procurement processes.


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