What is direct procurement?

Direct procurement is the process of purchasing or obtaining raw materials, resources, goods and services that are utilized in the core operations of a business. The goods and services procured through the process of direct procurement ultimately find their way to the end customer or client of the business. For example; a car manufacturer will require specific kinds of steel, plastic, and electronics that they will eventually be a part of the cars they produce. The process of procuring these materials will come under the gamut of direct procurement. Learn more about direct spend vs. indirect spend.