The purchasing process
Ordering routine products (and bottleneck products) is often referred to as indirect purchasing, non-product related purchasing or tail spend. These products (and services) support the primary activities of a company or institution. Usually these products are ordered ad hoc and from many different suppliers, within the department that needs the products.
Decentralized but under management
Decentralized purchasing of routine products entails many (hidden) costs and involves CSR risks. Ideally, purchasing remains decentralized, but purchasing is regulated by working with preferred suppliers, contracts and purchase orders.
In order to organize the indirect purchasing process in a decentralized and regulated way, a central purchasing platform is necessary. A corporate webshop where employees can order products from preferred suppliers themselves for their daily work. The products are managed through punchout links, e-catalogs and forms.
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