What is Direct Purchasing?

Direct Purchasing is the operation by which a company obtains the ownership of goods from another company, in exchange for a payment of an amount negotiated under conditions stated in a contract they have signed.

The aim is for the client company to get materials and goods necessary for manufacturing the product they are selling themselves.

Direct Purchasing is a key element that directly affects the production process of manufacturing companies. 

 By contrast, Indirect Purchasing covers a wide variety of standard goods and services with generally low value like office furniture, computers, or expensive goods or services like construction work equipment and office buildings.