Different types of Procurement | The Procurement Life
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- Опубликовано: 10 сен 2024
- Welcome to The Procurement Life channel! Today, we're exploring different types of procurement
There are three main types of procurement activities:
• Direct procurement
• Indirect procurement
• Services procurement
Based on usage, and goods or services procurement based on the items acquired.
Direct Procurement: This type refers to purchasing of goods or services that are directly used in the production of final products.
Direct procurement Example: Buying parts, equipment, and raw materials for the production process.
Indirect Procurement: Indirect procurement involve the purchasing of goods or services that are not directly incorporated into the final product but are necessary for the operations or management of the organization.
Indirect Procurement Example: Procuring office supplies, furniture, IT service, and maintenance services that support daily business functions.
Services Procurement: Includes acquiring people-based services or temporary resources required for various tasks.
Services Procurement Example: Hiring consultant, legal, advertising, leasing software, or engaging short-term vendors for events or projects.
This are just a few example of procurement types, and organizations may have various other specific categories based on their industry, needs and objectives
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