Direct and Indirect Procurement in Lab Equipment and Lab Supplies | Blog | ZAGENO

If you manage procurement or lab operations in a biotech or pharma company, chances are you’re balancing a wide variety of purchases, from precision instruments to everyday consumables to printer paper. But not all purchases are created equal. Understanding the difference between direct and indirect procurement, especially when it comes to lab equipment and lab supplies, can make a big impact on your budget, efficiency, and research outcomes.

In this guide, we’ll clarify what each procurement type involves, how it applies to different categories of lab purchases, and how you can optimize your purchasing strategy for both.

Lab equipment vs. lab supplies: What’s the difference?

Before we get into procurement types, let’s define two core purchasing categories:

While these two categories differ in price point and longevity, both are typically tied directly to the lab’s core scientific work, which means they usually fall under direct procurement.

Direct vs. indirect procurement: The basics

In life sciences, the most important procurement distinction isn’t between equipment and supplies, it’s between direct and indirect procurement.

Direct procurement refers to the purchase of items that are essential to lab operations and scientific output. These purchases are often subject to quality, compliance, and vendor performance standards. Items in the direct procurement category include:

• Lab equipment
• Reagents and media
• Pipettes, tips, and sterile containers
• Validated or GMP-grade lab supplies

Indirect procurement covers purchases that support the lab environment but aren’t involved in research or manufacturing workflows, such as: 

• Office supplies
• Facility maintenance
• Cleaning services
• Administrative software

Understanding which items fall into which category helps labs:

• Avoid supply chain disruptions
• Allocate budget effectively
• Strengthen vendor relationships for mission-critical items

For example, a high-throughput sequencer would be a direct procurement item due to its strategic role in a research workflow, while janitorial cleaning supplies are indirect.

Learn more about how MIT attributes direct and indirect costs. 

How procurement strategies differ by category

Understanding the nuances between direct and indirect procurement is key for effective lab management. Here’s how procurement strategies can differ:

Why this matters in life sciences

In biotech and pharma, the stakes are high. One missing piece of lab equipment can halt research. A shortage of lab supplies can delay timelines, compromise data quality, or even invalidate results.

• Ensuring compliance and quality. Many lab supplies and equipment are subject to stringent regulatory standards. Proper classification ensures that procurement processes uphold these standards, safeguarding research validity and patient safety.
• Optimizing budget allocation. By clearly distinguishing between direct and indirect procurement, labs can allocate budgets more effectively, ensuring that critical research components receive appropriate funding while maintaining overall operational efficiency.
• Enhancing supplier management. Understanding the nature of procurement categories allows labs to develop strategic relationships with suppliers for direct procurement needs, ensuring reliability and quality, while streamlining processes for indirect procurement to reduce costs.

Learn more: How to Vet Lab Suppliers 

That’s why more teams are investing in digital procurement platforms that help streamline lab purchasing across both categories. These tools offer visibility, standardization, and automation to reduce errors and maverick spend.

How ZAGENO supports both direct and indirect procurement

At ZAGENO, we understand the complexities of lab procurement. Our platform is designed to streamline the purchasing process for both direct and select indirect procurement needs.

Want to make smarter purchasing decisions across your entire supply chain? 

Start by evaluating how your team manages lab procurement today, and whether it supports both strategic and operational buying.