A.T. Kearney's 2010 Indirect Procurement Survey found that although once overlooked, indirect procurement organizations have come a long way and are increasingly recognized as having significantly more value to contribute. Indirect spending accounts for 60 percent of third-party spend in non-manufacturing companies, more than 90 percent in the financial services industry, and sometimes 50 percent of spend in manufacturing organizations.
Today, indirect procurement is most influential with IT, telecom, and logistics categories. And looking ahead, the greatest growth is expected in overhead and support, with facilities and logistics following closely behind.
Higher Visibility, Greater Expectations Ð A.T. Kearney Indirect Procurement Survey, 2010
Today far more people recognize the importance of indirect procurement as it now includes purchasing complex goods and services such as IT, marketing and advertising, facilities management, professional services, and maintenance, repair and operations (MRO), but few companies manage complex indirect spend categories with the level of attention necessary to reap the potential benefits.
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Global Survey of Indirect Procurement Best Practices Shows that Companies are Adopting New Practices, Such as Outsourcing and Analytics, at a Much Slower Rate than Expected
30 June 2010
Procurement executives from 94 multinational companies participate in global survey of indirect procurement.
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