How Do Direct Purchases Compare to Indirect Purchases?
Direct purchases differ from [indirect purchases](#) in several ways: - Purpose: Direct purchases usually involve items directly used in production or service delivery, whereas indirect purchases are for supporting operations (e.g., office supplies, maintenance services). - Cost: Direct purchases often involve bulk buying and can result in cost savings, while indirect purchases might have less price negotiation leverage. - Supplier Relationship: Direct purchases typically necessitate closer supplier relationships compared to the often transactional nature of indirect purchases.