Direct Procurement - Meaning and Importance

What Is Direct Procurement?

The best way to define procuring is the process undertaken to source goods and services as required from shortlisted vendors. Direct procurement or direct bidding is the process of procuring raw materials, goods, services, and other inputs needed for the primary functions of the business. 

Another way to look at procuring meaning in direct procurement is the expenses incurred for goods and services meant to be delivered ultimately to customers. These inputs are not meant for internal consumption or administrative purposes at all. A mobile phone manufacturer would need plastic, glass, and other electronic components to make a mobile phone. Expenses are undertaken to source all such inputs.