The problem of purchasing within small and medium-sized businesses is that it has often developed as the business has grown with little or no discernable plan. Whilst there may have been some rational strategy regarding direct materials, with indirect costs (which although they account for a smaller proportion of the spending are necessary for the organisation to function), the result is often that of unplanned trial and error.
What’s the problem?
This is a consequence largely of the business owner focussing on the main function of the business with little or no time to spend on other matters. As employees are added, indirect purchasing is often delegated to secretarial, clerical, administration or perhaps IT personnel. This results in the loss of an overall view of the spending and responsibility in the hands of amateurs (albeit well-meaning amateurs!)