GlossaryEN1 min readUpdated: Sep 6, 2026
Indirect Procurement Strategies for Logistics
When a logistics operation procures packing materials, cleaning supplies, warehouse management systems, or IT services, it is engaging in indirect procurement.
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Source: https://www.cips.org/knowledge/procurement-topics-and-skills/indirect-procurement/
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Logistics concept
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Definition & Explanation
When a logistics operation procures packing materials, cleaning supplies, warehouse management systems, or IT services, it is engaging in indirect procurement. Unlike direct sourcing (raw materials and components embedded in finished goods), indirect procurement covers goods and services that enable logistics operations themselves. Common strategies include framework agreements, category management, demand forecasting, and regular supplier performance reviews—all aimed at reducing costs, mitigating supply risks, and ensuring service continuity.
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