Sourcing Indirect Spend: A Survey of Current Internal and External Strategies for Non‐Revenue‐Generating Goods and Services

Abstract

Summary This article provides evidence about the current sourcing strategies for indirect spend from a survey of 124 organizations. The study found that, despite the recent prominence of reverse auctions and outsourcing options, the most frequently cited external sourcing management approach for indirect spend is long‐term collaboration with preferred suppliers. There was also evidence that indirect spend suffers from a lack of internal support, maverick purchasing, and fragmentation of spend within the organization.