Materials that are converted or processed to make the finished product. In category management in a manufacturing business, the most basic classification of categories is between direct and indirect materials. As direct materials are usually account for a greater share of total spend, and affect the quality of the final product, direct materials are usually seen as the more demanding of the two groups. Indirect spend includes stationery, printing, office supplies, pest control, telephone costs etc., while direct materials will be whatever is used to create the finished product. See also Materials, Indirect and Maintenance, Routine, Operating Categories.
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Discover the world’s largest Glossary of Procurement terms
With over 800 Procurement specific terms (and growing) you will find everything you need to know or thought you knew about the Procurement function. Our aim is to provide you with a comprehensive list collated from the Comprara Groups hub of training and procurement consulting source materials.The Procurement Glossary has been compiled by industry expert Paul Rogers.
