1. Direct Materials
are merchandise that are product components or used directly in the production process. They are not diverse but their procurement spend is high. They are categorized into packaging, commodities and chemicals.
Procurement Spend in 2018
2. Indirect Materials
are other merchandise not under Direct Materials which ensure business continuity. Procurement spend is not high, but covers a wide range of merchandise such as machinery, spare parts and consumables, etc.
Proportion of Procurement Spend
|Services, IT & office automation||6%|
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