The process of purchasing goods or services and usually in terms of business expenses. Business procurement requires preparation, solicitation, and payment processing, which usually involves different areas of any company.
Types of Procurement
1. Direct Procurement:
Direct-Procurement means finding something needed to make end-products. This includes raw materials and components for a manufacturing company.
2. Indirect collection:
Indirect collection usually involves buying items that are necessary for daily activities but do not directly contribute to the bottom line of the company.
3. Goods procurement:
Goods procurement basically refers to the collection of physical items, but it may also include items such as software subscriptions. Effective goods procurement usually depends on good supply chain management practices.
4. Services procurement:
Services procurement basically focuses on procuring people base services. depends on the company including hiring individuals like contractors, conditional labor, law firms and on-site security services.
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