When it comes to procurement, there are two main types: direct and indirect. Direct procurement is the process of buying goods or services directly from a supplier in order to meet a specific need. It involves selecting vendors, negotiating terms and conditions, placing orders, and managing payment transactions. In contrast, indirect procurement is the process of acquiring products and services that are necessary for a company’s operations, but do not directly add value to its core products or end-products. This includes office supplies, contract labor, professional services and maintenance contracts. Indirect procurement focuses on driving efficiency and cost savings through consolidating suppliers, negotiating volume discounts and leveraging strategic partnerships.