
Direct categories in procurement refer to the goods and
services that are directly used in the production of a company’s
final product or service. These are also called
direct spend categories, and they include all purchases
that directly impact manufacturing, operations, or service
delivery.
Examples of direct categories include:
Managing direct categories is critical because they directly
affect product quality, production timelines, and costs.
Procurement teams often work closely with engineering, operations,
and supply chain departments to ensure continuity of supply,
quality standards, and cost efficiency.
This is distinct from indirect categories, which cover items like
office supplies, marketing, or IT services that support operations
but don't go into the final product.