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The difference between direct procurement and indirect procurement
In small businesses there is one person, most of the time the owner, responsible for the procurement. In big multinational companies like Heineken and Shell, there is a whole department for the procurement. Procurement is an important department because they are responsible for the spendings of the company. A company can split the procurement in two parts: Direct procurement and indirect procurement. We will explain the differences between those two. Direct procurement Direct procurement consists the procurement of goods, services and raw materials which contribute directly to the company’s core business. In case of Heineken, for the production of beer products like hop are necessary. Too less hop can temporally…