Success factors in the procurement of indirect materials

The world of procurement has changed significantly as a result of the ongoing crisis, regulations and sustainability requirements, meaning that procurement departments must now also act as risk, volatility and sustainability managers for indirect materials. The study by the Leipzig University of Applied Sciences (HTWK) aims to analyse the key factors that determine the procurement process for indirect materials in European companies. Through a detailed examination of current challenges, the study aims to provide strategic insights into optimising the procurement process.

Aim of the study

Indirect materials are primarily associated with the need for efficient processing. Nevertheless, there are certain requirements and product ranges that demand greater attention and intensive support from the procurement department (e.g. because economies of scale need to be exploited, regulatory requirements exist, or there is a high supply risk with critical implications for business operations).

The study aims to determine which criteria companies apply to identify these requirements and product ranges, how significant the actual processing effort within the processes is, and how this is influenced by the consideration of sustainability aspects. Furthermore, the current state of technological support will be examined.

Content

In the procurement of indirect materials, the following are specifically examined:

• Threshold values and criteria for carrying out sourcing projects
• Process parameters (in particular frequency and timing) for:
  / Demand Management/
  
  Sourcing/ Supplier Management/
  Purchase-to-Pay
• Consideration of ESG (Environmental/Social/Governance) criteria and the associated change in workload
• Status of digitalisation and the use of ‘newer’ technologies