Category Solutions - Indirect Materials
Indirect materials are often one of the first spend categories targeted for centralized
sourcing. But indirect materials provide a challenge for sourcing teams because
they represent a very large number of items supplied by hundreds of suppliers and
used by many people across the organization.
Often sourced via reverse auction or e-RFx in lots or bundles, many buying teams
are leaving money on the table by not encouraging their indirect material suppliers
to be more creative and flexible in their proposals. Enabling suppliers to respond
to bids for indirect materials via Expressive Bidding® can create additional
cost savings and value through supplier-created bundles that leverage their strengths,
volume-based discounts, and alternate item suggestions that can consolidate similar
products.
Because indirect materials can be utilized by different stakeholders across the
organization, there are often strong preferences for materials, item quality, and
suppliers that must be considered during the sourcing process. Optimized scenario
analysis enables sourcing teams to consider the cost impact of these preferences
on their sourcing strategies and negotiate with internal stakeholders to find a
balance between cost and value to the organization.
CombineNet Sourcing Solutions have been used to source a wide variety of indirect
materials, including:
- Electric components
- Fasteners
- Filters
- Lab supplies
- Leased equipment
- Marketing materials
- MRO
- Office supplies
- Pipes/Valves/Fittings
- Printed materials
- Promotional items
- Gauges
- Pumps
- Safety supplies
View the CombineNet ASAP introductory video.