Definition

Procurement of direct materials covers the process flow required to obtain materials (raw materials or (semi-)finished goods) from a vendor and receive them in inventory either for further use in production or for sale.

The received materials are tracked and valuated in stock.

Procurement of direct materials is typically initiated by planning to ensure the availability of materials.

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APICS

Purchasing from suppliers on a contractual basis for a fixed period of time or amount of product. For job shops, the purchasing contract can be for only one job. For repetitive manufacturing, the materials are usually purchased on contracts that last for a model run or at least a year.