Direct procurement is the process of buying goods and services directly from a supplier. It involves selecting the right supplier, negotiating the best price, and ensuring the quality of the product or service. The main focus of direct procurement is to purchase the goods and services that are needed to meet the company’s requirements.
Indirect procurement, on the other hand, is the process of buying goods and services that are not directly related to the company’s core operations. This includes items such as office supplies, IT services, marketing materials, and other services. The main focus of indirect procurement is to reduce costs and increase efficiency.
Direct and indirect procurement are both important parts of the business process. Direct procurement helps to ensure that the company is getting the best quality goods and services at the best price. Indirect procurement helps to reduce costs and increase efficiency. Both processes are essential for the success of any business.
