Skip to main content

Procurement and sourcing

What does end-to-end procurement cover?

End-to-end procurement covers the full source-to-pay cycle: identifying demand, sourcing and selecting suppliers, negotiating and awarding contracts, managing supplier performance and risk, processing purchase orders and invoices, and reporting on spend. Direct spend buys what you sell. Indirect spend buys everything else, and the two are governed differently.

What is the difference between direct and indirect procurement?

Direct procurement buys the goods and services that go into what you sell, so it is managed for continuity of supply and unit cost. Indirect procurement buys everything the organisation consumes internally, such as IT, facilities, marketing and professional services. Indirect spend is more fragmented, harder to see, and is the spend most often outsourced to a BPO provider.

Guides and toolkits in this area

Browse the full course catalogue