---
title: Indirect Procurement: Definition and How It Works | Aavenir
url: https://aavenir.com/glossary/indirect-procurement/
description: Indirect procurement is buying what a business needs to run, such as facilities, utilities, staffing, software and office supplies, rather than to make its products.
updated: 2026-11-07
---

[Home](https://aavenir.com/) / [Resources](https://aavenir.com/resources/) / [Glossary](https://aavenir.com/glossary/) / Indirect procurement Glossary

# What is indirect procurement?

Indirect procurement is buying what a business needs to run, such as facilities, utilities, staffing, software and office supplies, rather than to make its products.

## What it covers

- Facilities, utilities and maintenance

- Information technology, software and telecoms

- Marketing, travel and professional services

- Staffing and human resources services

- Office supplies and equipment

These purchases support operations but do not go into the finished product. That is the difference from [direct procurement](https://aavenir.com/glossary/direct-procurement/).

## Why it is hard to manage

Indirect spend is often spread across many locations, departments and small suppliers, so it is easy to miss. Companies tend to focus on direct spend because it is visible in cost of goods. Indirect spend feeds tail spend and [maverick spending](https://aavenir.com/glossary/maverick-spending/), yet managing it well can bring real savings and lower risk, especially in services where contracts carry service levels and renewal terms.

## How Aavenir handles it

Indirect categories such as software and services are heavy on contracts. [Contractflow](https://aavenir.com/solutions/enterprise-contract-management-software/) keeps them on one record with renewal tracking, [RFPflow](https://aavenir.com/solutions/rfp-management-software/) sources them competitively, and [Invoiceflow](https://aavenir.com/solutions/accounts-payable-automation/) checks invoices against agreed rates.

## Where to start

Pick the indirect categories with the most spend and the most suppliers, often software, professional services and facilities. Map the contracts, find overlaps and renewals coming up, and use those dates to consolidate or renegotiate.

## Keep reading

[Indirect spend Indirect spend is money spent on goods and services that keep a business running, such as supplies, software and facilities, but do not go into its products. Read more](https://aavenir.com/glossary/indirect-spend-in-procurement/)[Direct procurement Direct procurement is sourcing and buying the raw materials, goods and services that go straight into the products or services a company produces and sells. Read more](https://aavenir.com/glossary/direct-procurement/)[Maverick spending Maverick spending is buying outside agreed procurement policy, such as from non preferred suppliers or off contract, which loses negotiated savings and adds risk. Read more](https://aavenir.com/glossary/maverick-spending/)

Frequently asked questions (FAQ)

## Common questions

###

### What is the difference between direct and indirect procurement?

Direct procurement buys what goes into the product, such as raw materials and components. Indirect procurement buys what keeps the business running, such as services, facilities and software. [Read about direct procurement](https://aavenir.com/glossary/direct-procurement/).

###

### Why is indirect procurement often overlooked?

It is spread across many departments and suppliers, and each purchase looks small. Added together, it is significant, and it is where much off contract spending happens. [Read about indirect spend](https://aavenir.com/glossary/indirect-spend-in-procurement/).

###

### How can indirect procurement be improved?

Map the spend, consolidate suppliers, put contracts in place for recurring needs, and make the approved buying route simple. Then check invoices against the contracts. Review the results each year. [See Contractflow](https://aavenir.com/solutions/enterprise-contract-management-software/).

Have a question we have not answered? [Ask the Expert](https://aavenir.com/contact/)

Schedule a demo

## See your contracts run on one record.

- **1****A 30 minute walkthrough**Built around your team, whether that is procurement, legal, IT or finance.

- **2****Your contracts, not ours**Bring a few sample agreements and watch Aavenir AI extract and review them.

- **3****ServiceNow or standalone**We show the deployment that fits the systems you already run.

Prefer to talk first? [Contact the team](https://aavenir.com/contact/).

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