The indirect material form the ideal chunk of spend to be put through a quick and efficient bidding process, owing to its being a highly commoditized and fragment supply market. It also allows for newcomers to show their strength against suppliers deep rooted in the buyer’s favorite list without any clear advantage.

The bidding also makes it easier for a buyer to look at a host of switching options based on the overall price performance ratio especially relevant for cutting tools etc which are purely performance based cost as against per piece cost.