Direct Procurement

Direct procurement is a pivotal facet of sourcing that focuses on the acquisition of materials, goods, and resources specifically intended for production purposes. In the realm of procurement, direct spend pertains to goods and services intricately linked to the product manufacturing process, forming a crucial aspect of operational efficiency.

Examples of direct cost categories encompassed in direct procurement include raw materials, machinery, and labor costs directly tied to the production process. Organizations prioritize direct procurement strategies to optimize costs, streamline production processes, and enhance overall manufacturing efficiency.

Learn more about Ivalua's Direct Materials Sourcing Solutions.