Direct and Indirect Procurement

[Former Member]

Hello Guys,

I am new to SRM, Can you please tell me what is meant by Direct and indirect procurement and the differences between them?

Also please send me some documents if you have some to james4@live.co.uk

Thanks in advance

Regards,

James.

[Former Member]

I explain from what I know with SAP SRM;

Procurement of materials which are used in your business but not used to directly manufacture or produce your goods is called as Indirect Procurement;

Procurement of materials which are used to manufacture your business products is called as Direct Procurement.

I currently use SRM for Indirect Procurement. I give you example:

A shopping cart will contain items like, Hotel Stay for business trip, buy papers and pen, buy a laptop etc..

Internal or external Catalogue can be used;

A computer hardware companies SRM direct procurment implementation will deal with the items like micro chips etc. Material Master data from R3 is used for this indirect procurement.

Please reward if you find this useful.

Thanks

Kasee Palaniappan