What are direct categories?

Direct Categories, in the context of procurement and supply chain management, refer to the specific goods or materials that are directly used in the production or manufacturing of a company's products. These categories typically include raw materials, components, and parts that are essential for the core production processes.

Managing Direct Categories is crucial for manufacturers as any disruption or inefficiency in the procurement of these critical items can impact production schedules, product quality, and overall business operations. Procurement professionals focus on strategic sourcing, supplier relationships, and risk management within Direct Categories to ensure a steady supply of high-quality materials at competitive prices.

Direct Categories are distinct from Indirect Categories, which encompass goods and services that support the organization's internal operations but are not directly incorporated into the final product.