Direct procurement covers goods and services that are incorporated into, or closely support, an organization’s products or primary delivery output. Examples vary by industry and can include raw materials, components, or production services. Because supply continuity, specification, quality, and cost can affect revenue and operations, direct categories often require close cross-functional governance.
In plain English
It buys what the organization needs to make or deliver its core offering.
Illustrative example
At Northstar Industrial Systems, the procurement team sources production-grade bearings used in the company’s manufactured equipment.
- Related terms
- Indirect procurement; Category management; Supplier risk; Strategic sourcing
- Lifecycle stages
- Strategy; Source; Execute
- Stakeholders
- Procurement; Operations; Quality; Finance