Council of Supply Chain Management Professionals (CSCMP) Practice Exam 2026 – The Complete All-in-One Guide to Exam Success!

Items purchased that do not go into the final products are termed indirect purchases. These items are generally associated with the operational aspects of a business rather than the production of its final goods. They can include items like office supplies, maintenance, repair, and operating supplies, which are essential for running the business but do not contribute directly to the creation of the product.

Indirect purchases play a crucial role in supply chain management as they ensure that the company can operate efficiently. Proper management of indirect purchases can lead to cost savings and improved operational efficiency. Understanding this distinction is vital for supply chain professionals, as it impacts budget allocation and overall procurement strategies.