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. This category of spend is the sum of all purchased goods and services that do not end up in products or services delivered tothe customer.

Though each of the four case studies offered different methods for controlling indirect spend, they were complementary. The four cases can be summarized as:

  Controlling