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Indirect Vs Direct Procurement

oboloo Glossary

Indirect Vs Direct Procurement

The official business definition of Indirect Vs Direct Procurement is the process of acquiring goods and services for a company. Direct procurement is the process of buying goods and services directly from a supplier. This type of procurement is usually used for items that are essential to the company’s operations, such as raw materials, office supplies, and equipment. On the other hand, indirect procurement is the process of buying goods and services from a third-party supplier. This type of procurement is usually used for items that are not essential to the company’s operations, such as travel expenses, professional services, and marketing materials. Direct procurement is typically more cost-effective than indirect procurement because it involves fewer middlemen and less overhead. However, indirect procurement is often more convenient because it allows the company to access a wider range of suppliers and services. Ultimately, the choice between direct and indirect procurement depends on the company’s specific needs and budget.

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