Question

how electronic procurement will be different when purchasing indirect spend items from what usually occurs with direct spend items?

Answer 1

Indirect spend items are nothing but the purchase of goods which are not directly involved in manufacturing and selling of goods. Indirect spend items are nothing but the goods which supports the goods that being sold or manufactured.

Examples: computer, printer, safety items, measurement equipment, furniture etc

Direct spend items are nothing but the purchase of goods which are directly involved in manufacturing and selling of goods. Direct spend items are nothing but the good that are require to produce main product.

Example: Raw materials, machines, softwares, hardwares etc.

Based on above two definition,

In an electronic procurement, purchasing of indirect spend items are limited. and is based on requirements of organization. Items are purchased may be once in a year to support the direct spend items. Hence indirect spend items are one time purchase to organization with limited numbers.

Where as in direct spend, items are purchased in bulk from the manufacturer, as these are the useful goods that are sold to customers. The items are purchased with regular interval of time with more quantities based on customer demand.