In fact, we’ve found that an average of 40% of purchase order line items will change over a given PO’s lifecycle. Their supply chain relies on a series of delicate dependencies. Anyone who manufactures a complex product will tell you that every day is a dance of sorts, balancing emails from customers saying they need more of a product with calls from suppliers saying they might miss their ship date. Unfortunately, it’s not that simple for many manufacturers because their direct and indirect spend follow very different processes. If direct and indirect spend fall under the umbrella of procurement, why not find one solution that can do both and call it a day? It’s used more often to talk about the indirect side of spending, though. Procurement: This is a catch-all term for all purchases of supplies or materials, whether indirect or direct.On the income statement, these expenses are generally classified as operating expenses. Think desks, phones, headsets, and office snacks. Indirect Spend: This is money spent on items or services to keep your business running.On a company’s income statement, direct spend is called cost of goods sold (COGS). Without these materials, there’d be no revenue. Direct Spend: This is money spent on materials that will eventually be sold to customers.Indirect Spendīefore we go any farther, let’s get some definitions out of the way to make sure we all speak the same language. The driving force behind SourceDay’s partnership with Coupa was a desire among manufacturing companies to see their total spend in one place, for their indirect and direct spend systems to talk.

The more integrated their information, the better equipped a business is to harness their data-and actually use it. Second, they look to make sure it connects to as many of their existing systems as possible. (They’re not going to dip into their margins if it’s not absolutely necessary.) First, they look to make sure that the technology solves a real problem in their organization. Manufacturing companies on the leading edge of their industries look for a few things when evaluating new technology. Here’s why we’re so excited about the partnership-and what our customers can expect. This integration allows manufacturing companies, or any company with complex direct spend requirements, to manage both their direct and indirect spend in one place. In August, SourceDay announced an exciting integration partnership with Coupa, the leading provider of procurement software.

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