Indirect procurement

Indirect procurement is the sourcing of goods and services not related to manufacturing for a business to enable it to maintain and develop its operations.

The goods and services classified under the umbrella of indirect procurement are commonly bought for consumption by internal stakeholders (business units or functions) rather than the external customer or client.

Companies' senior executives are often responsible for agreeing and defining this classification for simplifying their own financial, accounting and reporting structures.

[3] Research conducted in association with Supply Management [4] found that all businesses have indirect procurement.

The UK House of Commons Public Accounts Committee defined 'maverick spend' as the purchase of "legitimate goods but [using] unauthorised buying arrangements or unapproved suppliers".