Categorization 

There are a number of ways to categorize procurement, but one of the most common is by category type. The three main category types are direct, indirect, and services.

Direct procurement covers the purchase of goods and materials that will be used directly in the production process. This might include raw materials, components, parts, and finished products.

Indirect procurement covers the purchase of goods and materials that will be used in the company but not directly in the production process. This might include office supplies, furniture, vehicles, and janitorial services.

Services procurement covers the purchase of services that will be used by the company. This might include accounting services, marketing services, legal services, and IT services.