Getting the Most From Your Indirect Purchasing Dollar

Author(s):

Lee Buddress, Ph.D., C.P.M.
Lee Buddress, Ph.D., C.P.M., Director, Supply and Logistics Management Program, Portland State University, 503/725-4769 - leeb@sba.pdx.edu
Michael E. Smith, Ph.D., C.Q.A.
Michael E. Smith, Ph.D., C.Q.A., MBA Program Director and Associate Professor, Department of Management & International Business, Western Carolina University, 828/227-3697 - mesmith@email.wcu.edu
Alan Raedels, Ph.D., C.P.M.
Alan Raedels, Ph.D., C.P.M., Professor Emeritus, Supply and Logistics Management, Portland State University

91st Annual International Conference Proceedings - 2006 - Minneapolis, MN
Abstract

Every organization has some form of indirect purchasing. Even pure service businesses need office supplies, janitorial services and occasionally, consultants. This paper will discuss the characteristics that make Indirect Purchasing somewhat different from purchases of direct materials. Goals, objectives and strategies for indirect purchasing will be developed. Tools for indirect purchasing and inventory management will be described, followed by performance measures and other related topics. In some organizations, indirect purchasing is perceived as somewhat less important than the purchase of direct materials. While it is obviously vital that an organization maintain a smooth flow of materials for production, it should be equally obvious that without the necessary energy, lubrication and maintenance, production will just as quickly halt. It is the purpose of this paper to explain that, while some of the characteristics of indirect purchasing are different from direct purchases, it is of equal importance.

Getting the Most From Your Indirect Purchasing Dollar — 58 KB (PDF)