Two companies can spend the very same money, yet one keeps it under control while the other quietly leaks it. The difference often comes down to a single distinction every buyer must know: direct versus indirect spend. This short video breaks it down in plain English.
In three minutes, you will learn:
- What “spend” actually means, and how procurement splits it into two buckets
- What direct spend is: everything that goes into the product or service you sell
- What indirect spend is: everything that keeps the business running but never reaches the customer
- Why indirect spend is often 15 to 30 percent of the total, yet barely managed
- Where the easy savings are usually hiding, and why nobody owns them
The takeaway: direct spend goes into what you sell and is watched closely; indirect spend keeps the business running, is scattered across departments, and is where the easy savings often hide. Bring it under control with clear categories and preferred suppliers, and you unlock real savings without ever touching the product.
Want to learn how to find and control that hidden spend? Our practical, on-demand courses are built by people who work in purchasing every day.
Explore the courses and start building your procurement skills today.
