Lapasar
Spend & Cost Management

Indirect Spend

Also known as: Indirect procurement

Indirect spend is money spent on goods and services that support operations but do not go directly into a company's products.

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Indirect spend covers categories such as office supplies, pantry, IT equipment, MRO, facilities, marketing and professional services. It is spread across many departments and suppliers, which makes it harder to see and control than direct spend — and it is where much tail and maverick spend lives.

Because indirect categories are often fragmented, they hold significant savings potential through consolidation, catalogues and better process. Marketplaces are especially effective here, pulling many small indirect categories onto one platform with contracted pricing.

Frequently asked questions

What is indirect spend?
Indirect spend is money spent on goods and services that support the business but do not go into its products — office supplies, IT, MRO, facilities and professional services.
Why is indirect spend hard to control?
It is fragmented across many departments and suppliers, so it is less visible than direct spend and is where tail and maverick spend tend to accumulate.

Go deeper

Office supplies wholesale

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