Of course everyone wants to save money and that is not so surprising. The same goes for time. Time and money is precious and must be used as efficiently as possible. This is especially important in the course of various processes, such as the purchasing process. Many companies focus on optimizing direct purchasing and that is understandable, because that is after all the core activity of your company. Optimizing indirect purchasing is often further down the agenda. Nevertheless, it is certainly wise to optimize indirect purchasing. What exactly does indirect purchasing entail and what are the advantages of outsourcing it? You can read all that in this blog.
Indirect purchasing: what is it exactly?
When we talk about indirect purchasing, we are talking about the goods that are purchased as support to the production process. This mainly concerns facility goods, such as energy costs, maintenance, office supplies and so on. There is a good chance that indirect purchasing is done from many different suppliers and that means that there is no clear overview. Many invoices are sent and it is not clear whether you are actually getting the right price-quality ratio. If this is the case, there is minimal control and minimal insight. This costs time and money and needs to be resolved.
The benefits of outsourcing indirect procurement
By outsourcing indirect procurement, a lot of time and money can be saved. Listed below are a number of advantages when indirect purchasing is outsourced.
Reduce the supplier base
By replacing the large group of suppliers with 1 large supplier, you ensure that there is 1 invoice that needs to be sent and there is only 1 payment term. This saves a lot of time and money. Invoice management is therefore also a lot more efficient. The time and money you save can be invested in other important parts of the process.