may contain budget and purchase values to make the individual aware of the annual and remaining budget before a purchase is made. Such a system is there to guarantee that goods and services are purchased with the consent of the line manager and that a sufficient budget is available. Direct and indirect procurement Direct procurement is what a company needs to produce a finished product or provide a service. For example: scrap glass for glass production or sand, chemicals for drug production, contract manufacturing. Each industry has its own categorisation, a division into direct and indirect procurement. There are borderline categories, such as transportation of finished goods. Direct procurement: cost categories (more than 50% of total costs); high impact on product quality, revenues and profits; management control (usually there is a procurement department); high level of digitalisation; strong integration of production, logistics; other stakeholders in the background; stable suppliers, production cycle, high system rigidity; cost optimisation projects are permanent, aiming for short-term results not at the expense of price, but rather at the expense of consumption. Indirect procurement: less costly categories; revenue impact is high, but more indirect; lack of a unified management strategy; scattered functions - the procurement department covers a small part of it: little data, information, attention to categories, low level of digitization; there are few or no category experts; internal clients are often the buyers themselves for their own functions (IT, marketing, HR, logistics), each with their own stable procurement scheme See also Blanket order Collateral Billing number Invoice Purchase order request Remittance advice Sales order Supply-chain auction References Accounting source documents Procurement Supply chain management Business documents