Direct vs. Indirect Procurement: Understanding the Nuances

Smart Consulting Sourcing

When you cook up a storm in the kitchen, everyone wants to know about the ingredients, right? But there's more to the culinary magic than just spices – it's the hidden elements that play a crucial role.

Think of the pots and pans, the table decoration -- all of them quietly contribute to the whole gastronomic experience and hey, don't forget that cookbook on your shelf – it's the one that gave you the recipe idea in the first place! But when we enjoy a meal, we tend to overlook these behind-the-scenes players, focusing more on the ingredients.

Procurement works the same way with direct (buying ingredients for your product) and indirect (getting stuff that supports your business). Even though indirect procurement doesn't get the same attention as the direct side, it's a crucial part of any organization's strategy.

While indirect procurement may not grab headlines like direct procurement, it's a vital part of any organization's strategy. It requires a different approach, a keen eye for detail, and an understanding of the broader business context.

In this Smart Consulting Sourcing podcast episode, Helene explains the strategic nature of both direct and indirect procurement and shares insights about their evolving landscape to empower clients for procurement optimization. Don't miss it.