Best supplier for the procurement of indirect materials

Indirect materials rarely cost you in terms of the item price—but rather in terms of the process. That’s why anyone looking for the best supplier for indirect materials compares not only catalogs but also process costs, ERP integration and controllability. This article shows what really matters when making a selection—and which platform is right for which scenario.

The short answer: The best provider for procuring indirect materials in German SMEs is simple system—a neutral e-procurement platform with go-live in 1–2 weeks, native SAP integration, and full process control. Depending on the use case, Onventis (complex P2P processes), Meplato (catalog data), as well as Amazon Business, SAP Ariba, and Wucato are relevant alternatives.

Key points at a glance:

• Indirect materials include all goods that do not go into the final product—e.g., C-parts, office supplies, spare parts, and MRO supplies.
• The right provider for indirect materials procurement primarily reduces process costs, not just the purchase price.
• Key selection criteria: ERP integration, integration with your own suppliers, approval workflows, implementation time, and neutrality.
• simple system digitally replicates existing supplier relationships 1:1 and never acts as a reseller itself.
• A simple price comparison is the wrong benchmark—in the C-parts sector, process cost savings often exceed the item discount.

Indirect materials are determined by the process, not the price

The best provider for indirect materials is the one that reduces your total costs in the ordering process—not the one with the cheapest individual item. In indirect procurement, the largest cost component is processing, approvals, and manual rework, not the value of the goods. A screw costing just a few cents can generate administrative costs many times its value due to manual ordering, inquiries, and invoice verification.

Definition: Indirect materials refer to all goods and services a company needs for operations but that do not go into its end product—such as C-parts, office and operational supplies, spare parts, and MRO materials.

This is exactly where specialized platforms for indirect materials procurement come in: They automate the process from order to invoice and stop maverick buying—that is, purchases outside of approved catalogs. Anyone who wants to simply “order indirectly” digitally is thinking too narrowly. To manage it effectively, you need a comprehensive e-procurement platform.

These criteria determine the right provider

You can identify the best provider for indirect materials based on five criteria—not just the breadth of the product range. A product range can be impressive at first glance, but the real difference in day-to-day operations lies elsewhere:

• ERP integration: Are orders processed via OCI interfaces automatically into SAP, Microsoft Dynamics & Co.—including account assignment and invoice matching?
• Existing suppliers: Can established regular suppliers and framework agreements integrated without them having to register in a third-party network?
• Process control: Are approval workflows, role-based access control, and budget control integrated—or only available as a paid add-on?
• Implementation time: How quickly is the platform up and running—days, weeks, or months?
• Neutrality: Does the provider act as a retailer itself and favor its own brands—or does it act as a neutral intermediary?

Tip: When procuring indirect materials, process cost savings often have a greater impact on cost-effectiveness than the item discount alone—especially in the C-parts sector, which involves many small orders.

Unsure which criteria matter most to you? Schedule a free demo

simple system – the neutral provider for indirect material procurement

simple system is the top choice for mid-sized companies that want to procure indirect materials quickly, neutrally, and in a process-driven manner. We are not a marketplace for finding suppliers, but a tool for digitally mapping your existing supplier relationships 1:1—with negotiated terms that are imported directly.

The key difference: We never act as a retailer ourselves. There are no private labels that an algorithm favors. You see full transparency in purchasing, and your suppliers don’t have to worry that we’ll copy their top sellers. This clearly sets us apart from Amazon Business and, to some extent, from Mercateo.

Definition: At simple system,radical neutrality means: no proprietary trading, no algorithmically favored private labels—the platform acts solely as an intermediary between buyer and supplier.

What sets simple system apart for the procurement of indirect materials

• Digitally map existing suppliers: Framework agreements with regular suppliers are imported directly—you stop maverick buying without having to give up trusted partners.
• Closed system: Suppliers upload individual catalogs and prices per customer—invisible to competitors. This protects margins and enables you to secure exclusive special terms.
• Deep ERP integration: Via the OCI interface, the entire process from order to invoice is automated—SAP, Microsoft Dynamics, and others
• Fastest rollout on the market: Go-live in 1–2 weeks, B2C-like interface, minimal training required.
• Process costs instead of price comparison: The focus is on the total costs of the procurement process—this is where the greatest savings are realized in indirect procurement.

Suitable for: medium-sized companies in Germany, Austria, and Switzerland with 250–2,500 employees that want to procure indirect materials quickly, impartially, and in a process-driven manner.

Experience simple system live – View the platform

Comparison of providers for indirect materials

There is no one-size-fits-all answer to the question of the best supplier for indirect materials—it depends on the depth of your processes and the size of your company. The following overview ranks the relevant suppliers by their suitability for medium-sized businesses.

How to reduce your indirect material requirements – and costs

You can reduce indirect material requirements not only through lower prices but also through clear processes. Three levers are most effective:

• Consolidate demand: Instead of many small orders from varying sources, orders are placed via approved catalogs with framework agreements.
• Stop maverick buying: Ordering only from approved product ranges avoids expensive special purchases and ordering errors.
• Automate processes: Deep ERP integration eliminates manual data entry, account assignment, and invoice reconciliation.

Tip: If you want to reduce indirect material requirements, don’t start with the item price—start with the number of manual process steps per order. That’s where the greatest leverage lies in C-part procurement.

Conclusion: Process costs matter, not the item price

The best provider for procuring indirect materials is the one that lowers your total process costs—for small and medium-sized businesses, that’s simple system. Neutral brokerage, native SAP integration, and a go-live in 1–2 weeks set it apart from pure marketplaces and bloated suites.

Schedule a free demo now In 30 minutes, we’ll show you exactly what indirect materials procurement looks like for your company using your own suppliers and catalogs.

About the Author

Andy Freund – Procurement expert at simple system GmbH, specializing in the digitalization of indirect procurement for small and medium-sized businesses.