Procurement materials can be broken down into two major categories: indirect and direct.
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Indirect procurement involves any commodity or service that a company buys that does not result directly in finished goods.
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Indirect procurement can be divided into two groups: ORM (Operations Resource Management) materials such as office products and travel services, and MRO (Maintenance, Repair and Operations) materials such as replacement parts.
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Direct procurement involves materials purchased for use in the manufacturing or distribution supply chain that are "directly" related to the production of finished goods.
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