Examples of Direct Procurement

Direct procurement refers to the process of acquiring goods and services used directly in the production of a company's products. Here are some examples:

1. Raw Materials: Purchasing materials like steel, wood, or cotton that are essential for manufacturing products.

2. Components: Buying components such as microchips, engines, or circuit boards that are integrated into final products.

3. Packaging Materials: Acquiring packaging materials like boxes, labels, and containers used to package the finished goods.

4. Subassemblies: Procuring partially assembled components that are used in the final assembly of products.

5. Manufacturing Equipment: Investing in machinery and tools that are directly involved in the production process.

6. Energy: Securing energy resources, such as electricity or gas, is required for production operations.

These items are crucial for maintaining the production line and ensuring that end products meet required standards and meet demand.