Indirect procurement, often called Goods Not for Resale (GNFR), encompasses all goods and services required to run a business. This includes everything from office supplies to IT services, and it’s an area where the I-Tel Group has carved out a niche.
A recent industry report on indirect procurement in 2024 highlights the current challenges and emerging trends within this sector, providing a valuable roadmap for businesses striving to optimize their procurement processes. At the heart of these developments, I-Tel Group is ahead of the curve, offering innovative solutions that resonate with the report’s findings and anticipate the future needs of indirect procurement.
The Current Challenges of Indirect Procurement
The landscape of indirect procurement is marked by several key challenges, including navigating economic and political uncertainties, reducing downtime, and combating counterfeit products. With inflation and rising costs posing major concerns for the coming months, businesses are in dire need of strategies that not only streamline operations but also safeguard against global instabilities.
Interestingly, the report highlights a paradigm shift towards sustainability, with over half of the respondents acknowledging the importance of Environmental, Social, and Governance (ESG) criteria in their company’s strategy. An impressive 71% of businesses now prioritise ESG considerations when selecting suppliers, indicating a move towards more ethical and sustainable procurement practices.
However, amidst these positive trends, a critical gap in cybersecurity measures has been identified. The report points out a worrying lack of initiatives to counter threats from cyber-criminals, underscoring an urgent need for comprehensive solutions that encompass security alongside efficiency and sustainability.
I-Tel Group’s Comprehensive Approach
In response to these multifaceted challenges, I-Tel Group stands out with its robust procurement and delivery strategy. Recognising the essential role of indirect procurement in ensuring the smooth operation of businesses, I-Tel offers a suite of services designed to address the current needs and future demands highlighted in the 2024 report.
Facilities and asset management, specialised expertise, administration, and logistics are among the critical areas where I-Tel provides valuable support. I-Tel guarantees compliance and quality in all procured products and services through meticulous due diligence, leveraging an extensive network of sources to meet diverse needs – from niche items to mainstream essentials.
One of the pivotal strategies underscored in the report is the automation of transactional tasks through eProcurement. In line with this, I-Tel Group has developed an eProcurement platform to support the procurement process with ease, deployable across any organisational scale, effectively eliminating the costs, risks, and disruptions typically associated with system implementation.
MRO: A Case in Point
The significance of Maintenance, Repairs, and Operations (MRO) in indirect procurement cannot be overstated, representing a substantial area of expenditure. Statistics reveal an average annual spend of £1.6 million on indirect MRO supplies, with larger enterprises (over 1000 employees) averaging around £3.3 million. This substantial investment underscores the need for strategic management and optimisation in indirect procurement, particularly in MRO, to realise potential savings and enhance operational efficiency.
The Role of Innovation and Strategy in 2024
Looking ahead, it’s clear that indirect procurement will continue to play a critical role in business operations. Innovation, particularly in digital procurement solutions, is a key driver of efficiency and resilience. Meanwhile, the increasing emphasis on sustainability and ethical practices points to a broader transformation in how businesses approach procurement. It’s no longer just about cost-saving; it’s about value creation – value that encompasses ethical sourcing, environmental stewardship, and social responsibility.
The solution that we offer at I-Tel is designed so we are not just a service provider, instead, we are strategic partners, enabling businesses to meet the challenges of today and seize the opportunities of tomorrow.
The insights from the indirect procurement forecast for 2024 underscore the need for a holistic approach that balances efficiency with ethical and sustainable practices. We would love you to consider us as your strategic partner for indirect procurement solutions. Get in touch with our team today.
