Direct Procurement - Meaning and Importance

What Is Direct Procurement?

Direct procurement is the process of acquiring goods and services that are directly related to the production of a company's products or services. Examples of direct procurement items include raw materials, components, equipment, and packaging materials.

Direct procurement is an important function in manufacturing, construction, and other industries that produce physical products. Effective direct procurement can help organizations to improve the quality of their products, reduce costs, and manage supply chain risks. Direct procurement is often supported by technology solutions, such as procurement software and supplier management tools.