
Indirect categories in procurement refer to the goods and services that are not directly
involved in the production or delivery of a company’s core products or services but are
essential for its day-to-day operations. These purchases are often referred to as indirect
spend.
While direct categories are directly linked to the production process (such as raw materials or
components), indirect categories support the business functions but don’t directly become part
of the final product.
Managing indirect categories effectively can lead to cost savings, better supplier relationships, and improved operational efficiency.