Direct spend is any expenditure made by a business for the procurement of goods or services that are directly involved in the manufacture of the end product. For example, for a car company, spend on the steel that makes up the body of the car, the rubber for the tires, the electronic components in the car, or the plastic for the interiors and dials; all of these are accounted for in direct spend or direct procurement. Indirect spend is any spend by a business or organization for materials and services that are not attributed to the production of the company's end product, but are rather critical to the continued operation of the company. Thus, in the same car company; indirect spend would involve the procurement of everything from laptops for its employees, to office space, resources for marketing and advertising, and all other essential goods and services that are needed to keep a company running. Learn more about the differences between direct and indirect spend.
GEP SMART is an AI-powered, cloud-native source-to-pay platform for direct and indirect procurement. GEP SMART offers comprehensive source-to-pay functionality in one user-friendly platform, inclusive of spend analysis, sourcing, contract management, supplier management, procure-to-pay, savings project management and savings tracking, invoicing and other related functionalities.
GEP NEXXE is a uniﬁed and comprehensive supply chain platform that provides end-to-end planning, visibility, execution and collaboration capabilities for today’s complex, global supply chains. Built on a foundation of data, artiﬁcial intelligence and cognitive technologies, GEP NEXXE helps enterprises digitally transform their supply chains and turn them into a competitive advantage.