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Direct Procurement and Indirect Procurement

Former Member
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HI Gurus,

Is purchasing below example of Direct Purchasing or Indirect Purchasing?

Car Fluids


Brake Fluid

Assumption: Car manufacturing Company buys the above from external suppliers, puts them into each of his new assembled cars before selling the cars to customers


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Answers (2)

Answers (2)

Former Member
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Hi Ankur

The products you mentioned above  are all materials, therefore will fall under direct procurement

whereas indirect procurement covers service items i.e. transport, shipping, engine maintenance etc..

Hope it helps


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Hi Ankur,

As per the products given by you. If the company is procuring such products via catalog supplier, where we have pre-negotiated price. Then such products can be considered under Indirect Procurement.