Procurement Direct Definition
Procurement Direct is the term used to describe the process by which an organization purchases goods or services. The procurement process usually starts with the identification of a need, followed by the sourcing of suppliers, the selection of a supplier, and finally the negotiation of terms and conditions.
In many cases, Procurement Direct can be conducted entirely within an organization, without involving any external parties. However, in some cases it may be necessary to involve external parties in order to obtain the goods or services required. For example, if an organization needs to purchase a new piece of equipment, it may need to involve an outside supplier in order to find the best possible deal.
The term ‘Procurement Direct’ is sometimes used interchangeably with ‘procurement.’ However, there is a subtle difference between the two terms. Procurement generally refers to the entire process of acquiring goods or services, from identification of a need all the way through to delivery and payment. Procurement Direct specifically refers to the act of purchasing goods or services, without necessarily involving any other steps in the procurement process.
