All posts in Direct Spend

Direct Procurement Examples

I hope that you have enjoyed the article “Direct Procurement: Different Types Defined.” Don’t miss updates on Procurement & Supply Chain, Subscribe here! In the article, I contrasted “market-driven direct procurement” with “cost-driven direct procurement.”  Allow me to give examples of each. Let’s take the example of a bottle of ketchup.  A bottle of ketchup lists eight ingredients. Each of…

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Direct vs. Indirect Spend

One of my students asked about the difference between direct and indirect spend, so I thought I’d post my reply here so that others may benefit from the definitions, too… Don’t miss updates on Procurement & Supply Chain, Subscribe here! Direct spend refers to purchases of goods and services that are directly incorporated into a product being manufactured. Examples include…

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