The difference between direct and indirect sourcing is reflected in the manner in which sourcing is automated. Despite the fact that indirect spend (sourcing and purchasing) is not critical to a business, it takes up about 20% to 50% of total spend and thereby offers great potential for cost savings.
This is mainly accomplished, on one hand, by rationalizing the supplier base, and on the other hand, by having the business aligned with a selection of preferred suppliers with whom contracts are negotiated. This results in much more spend under management and straight-through processing of invoices, which in turn, results in better cash flow management.
ICreative offers Basware solutions that focus predominantly on indirect sourcing and purchasing. However, with regards to invoice processing and spend management, our solutions pertain to both direct and indirect sourcing and purchasing.