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Indirect procurement for retail

The challenge

Intelligent procurement for non-merchandise spending

Challenged by continued economic and business pressures, retailers are striving to improve the effectiveness of their procurement operations and achieve advantaged pricing, greater efficiency, tighter control of spending, improved service levels and increased visibility on a global scale. But traditional indirect procurement practices are spread across multiple organizations—and disparate and disconnected systems and applications—resulting in inconsistent policies and procedures, and cost inefficiencies.


The solution

A flexible solution that can interconnect existing systems

The indirect procurement solution includes the source-to-pay platform, which interconnects with existing systems, allowing IBM to deliver procurement services across any and all applications and platforms, including SAP, Emptoris and others.

IBM can transform your indirect procurement spend, giving you visibility into non-merchandise spending, as well as the controls and ability to aggregate spending on a global basis. This can help you improve efficiency, reduce costs, and standardize and automate processes.


The benefits

Smarter spending, lower costs

We can provide our services by using your existing IT tools and applications, a combination of your systems and IBM provided systems, or a complete IBM-hosted source-to-pay solution. Our services can enable you to:

  • Reduce costs by optimizing your indirect spend across multiple vendors.
  • Build an integrated enterprise-wide business view of indirect spending.
  • Apply the same level of discipline, visibility and management toward indirect purchasing processes as you do to direct purchasing.
  • Consolidate indirect procurement responsibility rather than having it spread among multiple organizations.
  • Standardize buying behaviors to help limit unauthorized purchases.


The specifics

Intelligent savings through process automation and spend management

By building intelligence into the entire system, retailers can eliminate inefficiency and waste at virtually every step of the indirect procurement chain. Our services include:

  • Spend management—to standardize and deploy processes and technologies to improve procurement management of spend and increase savings.
  • Sourcing leverage—to employ aggregate spending with suppliers, and negotiate the best price for indirect products and services even when purchase volumes are low.
  • Improving processes—to ensure that there is alignment between procurement and business unit objectives, and gain effective measurement and reporting of the increased value generated by procurement.