Blog Pick of the Week: A guide to Indirect Spend: IT Hardware
I always think "indirect spend" is an interesting term. One company's indirect is another's direct. Similar to one person's trash is another's treasure? For example, most companies buy laptops and IT equipment as tools to run their business. Yet IBM and Dell think of it as their "direct" spend to their customers.
Managing the indirect spend and controlling costs make such a huge impact to the bottom line. Technology is changing so quickly, it is getting more and more difficult to manage this area of procurement. By the time a rollout is underway, there is another version or an upgrade available.
How do you make decisions about all this? I like this series of blogs and subsequent comments. The Purchasing and Supply blog is reviewing a variety of approaches and challenges for sourcing indirect product. This week is IT procurement.
Do you use one supplier that can handle it all or multiple specialty suppliers? What is more cost effective approach? As the blog states, it is much more now than just getting the right box for the right price.
How does your company manage this area? What have you been able to learn from the latest trends and how has that changed your daily role?