Indirect procurement is the purchase of goods and services that are not a part of the product or service sold by the organization to its customers. These are overhead costs that support the necessary day-to-day operations of the business and its infrastructural needs without being a part of the core revenue-generating output.

Indirect procurement spend is highly fragmented as it spans across a variety of categories and a slew of suppliers. These diverse categories make it challenging to manage indirect procurement without a strategic approach like category management.

As it is often less visible than direct procurement, the effective management of indirect procurement with a robust procurement solution like e-procurement software can help enhance operational efficiency and boost the bottom line of any organization.