As a result, you need to slightly tweak your approach to both branches to get them right.

The different functions of both direct and indirect procurement mean that there are differences in how both operate. While direct procurement focuses on securing the core supplies that are processed and delivered to your customers, indirect procurement deals with the supply of spontaneous goods. The key difference between direct and indirect procurement is the function they address. ☛Download free ebook: Looking to automate procurement? Here's a step-by-step guide Differences between direct and indirect procurement But they don’t exert any direct input into the finished products and services you deliver to your customers. Indirect supplies are, in their own way, still essential to your organization. These indirect supplies include office supplies & stationery, decorations, etc. Indirect procurement deals with acquiring products and services that support a business’s operations, albeit in a non-essential role. Note: Direct procurement features mostly in physical manufacturing industries where direct raw materials are processed into physical products. a fabric factory ordering textiles and cloth materials for processing and sewing down the line.a construction company making an order for the cement and blocks for an ongoing project.

a baker buying the flour for making bread.Some examples of direct procurement include: It deals with the inputs that form the backbone of what your organization offers. Direct procurement is the process of acquiring the products, supplies, goods and services you need for your core business activity.ĭirect procurement, in essence, is about acquiring those essential products and services that make their way right to your end customers with some processing.

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