Critical Issues - Procurement Academy

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MISSION STATEMENTCAPS Research contributes compet-itive advantage to organizations by delivering leading-edge researchglobally to support continuouschangeand breakthrough perform-ance improvement in strategicsourcing and RESEARCH IS JOINTLY SPON-SORED BY THE W. P. CAREY SCHOOL OF BUSINESS AT ARIZONA STATEUNIVERSITY AND THE INSTITUTE FORSUPPLY MANAGEMENT2 12 17 2329SEPTEMBER 2003Critical IssuesREPORTHot Topics in Today s Supply ChainManagementIntroductionCase One: Creating an IndirectPurchasing/SupplyOrganizationCas e Two: e- Procurement for Indirect SpendCase Three: Managing IndirectSpend ThroughActivity-BasedCostingCase Four:OutsourcingIndirect SpendEXECUTIVE OVERVIEW Indirect spend is receiving increased attention from the senior management of large corporations.

spend across or between different functional areas. Another common problem is that indi-rect spend may be hidden in the price of direct materials.