In order to choose the right procurement method, procurement managers have to take everything from an organization’s needs and budget to its strategic goals into consideration. Purchasing patterns can be identified with a thorough spend analysis, and they can indeed reveal which would be the right choice, direct or indirect procurement.

If the needs are well-defined and the supplier’s pricing would be the only differentiator, then procurement managers can opt for the RFQ process. If the request is complex and requires a detailed proposal, an RFP might be the right fit. If they anticipate a long-term, repetitive purchase, a blanket purchase order may be the best option.

Choosing the right procurement method depends on the procurement policies in place and the e-procurement tools available. Procurement tools help streamline the execution of the process, regardless of whether it involves direct or indirect procurement needs.