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What is the difference between direct procurement and indirect procurement?

Procurement as an important business process has grown enormously in recent years. Typically, procurement started as a means of integrating procurement into supply chain management at a time when most companies large and small were struggling to control their operational costs. In this article we explain the difference between direct and indirect purchasing. Optimizing direct purchasing is a priority for every company, indirect purchasing is therefore not often high on the list. With the Corlido model you can save up to 21% on indirect purchasing costs. Knowing more? Then read on!

What exactly is direct procurement?

Direct purchasing is the acquisition of raw materials or, for example, goods for production. These purchases are usually made in large quantities. These types of purchases are common and very necessary for important business practices. When direct purchasing ceases to function, companies are no longer able to produce their product and generate revenue.

Read more about procure to pay.

What exactly is indirect procurement?

Indirect purchasing is the purchase of services that are necessary to keep the day-to-day running of business under control. One way to classify indirect purchasing is that it does not contribute to the bottom line. This includes things like repairing equipment, purchasing office supplies, or acquiring services. Without indirect procurement functions, companies would not be able to operate effectively.

Benefits of outsourcing NPR procurement to Corlido

• Grip on indirect purchasing.

• More time for strategic purchasing.

• Reduce internal costs and save up to 21%.

• One supplier for thousands (single creditor model).

• One purchasing portal for all indirect purchases.

About Corlido

Corlido Group, an international purchasing organization with roots in the Netherlands. Founded in 1995 as a traditional wholesaler. In 26 years we have grown into a group of more than 100 purchasing and supply chain professionals. From our 23 worldwide locations, we work hard every day to optimally serve our clients.

Would you like to know more about indirect procurement?

Would you like to know more about indirect procurement? Check out the Corlido website! When you want to outsource your indirect purchasing