What is Indirect Procurement?

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.

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.

You can operate any part of your supply chain through I-Tel Group and benefit from significantly reduced administration. 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.

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Gareth Shaw, I-Tel Group

Gareth Shaw

Senior Procurement Consultant

Gareth has over 19 years’ experience in commercial procurement contract management across both public and private sector. Holding senior positions at the Ministry of Justice and Turner and Townsend Gareth has overseen several multi million-pound contracts.
Guiding I-Tel in best practice and sustainability while offering practical solutions to steer our procurement team towards red tape reduction and compliant, efficient services.

Gareth Thompson

Legal & Compliance

Gareth is a qualified, senior commercial solicitor with 30 years’ experience. As counsel to the directors Gareth brings a wealth of experience to enhance I-Tel’s legal compliance and ensure supply chain legitimacy.
Overseeing all our commercial agreements and supporting the individual requirements of our clients, Gareth brings tremendous credibility to the whole organisation.
Dee Sarikaya, Head of Marketing, I-Tel Group

Dee Sarikaya

Head of Marketing

An impressive background with blue chip companies Dee is a former global B2B Commercial manager for Dyson. A proven track record in marketing and communications Dee is responsible for I-Tel’s client onboarding and messaging.
With huge experience in strategic international campaigns and working effectively in cross-functional teams Dee brings strong commercial acumen alongside an excellent ability to interact and influence at all levels.
Paul Keenan, Head of Client Services, I-Tel Group

Paul Keenan

Head of Client Services

Paul has over 30 years’ experience in B2B sales in both the public and private sector and heads up our client services division. Overseeing high value public and private sector contracts Paul has in depth knowledge of the industry.
Key contact to senior management and C suite clients with a problem solving, customer service excellence ideology.
Andrew Plummer, Operations Director, I-Tel Group

Andrew Plummer

Operation Director

A co-founder from the outset Andy has headed the operations team for I-Tel group. An engineer by trade Andy has a vast experience in manufacturing, logistics and warehousing.
Overseeing the day to day complexities of our hybrid model and ensuring all the individual parts function to produce the seamless highly efficient business model we see today.
Melvin Gauci, MD, I-Tel Group

Melvin Gauci

Managing Director

Managing Director and founding partner at I-Tel Group. Mel has been instrumental in transforming the business from a start-up cartridge manufacturing facility to an innovative forward thinking procurement company.
With 15 years at the helm and in depth knowledge of I.T. infrastructure and data analysis I-Tel Group is today one of the latest key players in the indirect procurement space.

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