Indirect purchasing centrally organized, bringing daily orders under management.
Ordering routine products (and bottleneck products) is often referred to as indirect purchasing, nonproduct related purchasing or tail spend. These products (and services) support the primary activities of a company or institution. Typically, these products are ordered adhoc and from many different suppliers, within the department that needs the products.
Decentralized procurement of routine products involves many (hidden) costs and has CSR risks. Ideally, procurement remains decentralized, but is regulated by working with preferred suppliers, contracts and purchase orders.
To decentralize and regulate the indirect purchasing process, a central purchasing platform is necessary. A corporate webshop where employees themselves can order products from preferred suppliers for their daily work. The products are managed through, punchout links, e-catalogs and forms.
Automation of the procurement process can amplify existing errors and wait times and introduce new errors and wait times. To avoid this, processes must be optimized before they are automated.
Trend Report
Whereas digital transformation was previously mainly something for pioneers and daredevils, anno 2024 it is an absolute must-have for every organization. Challenges such as rising costs and staff shortages are forcing organizations to look for ways to work more efficiently. Automation plays a crucial role in this.
