Direct purchase is the act of acquiring raw materials and goods for production. These purchases are generally made in large quantities, acquired from a pool of suppliers at the best possible cost, quality and reliability. These purchases are made frequently and are necessary for key business practices, such as a baker acquiring flour to produce bread.
If direct purchase stops functioning or encounters problems, companies are no longer able to manufacture their product and create revenue.
Which is more important? Direct procurement drives external profits, and is responsible for revenue, costs, quality and performance. Indirect procurement holds responsibility for day-to-day functionality of an organization.
Overseas direct purchase (ODP, 해외직구/海外直購) means a new consumption pattern in which consumers purchase products and/or services at foreign online shopping malls and have them delivered to their domestic addresses.
Recently overseas direct purchase is growing in popularity as well as volume in Korea. In 2013, the total amount of overseas direct purchase surpassed one trillion won (around U$960 million). On the contrary, what overseas consumers purchase products at local online shopping malls is called "reverse ODP" (역직구/逆直購). Moreover, ODP is expanding the object to overseas stocks issued by promising IT corporations.
The authorities concerned are very positive to overseas direct purchase as it is helpful to cut down the prices of imported goods just like parallel imports.
A plan that enables interested first-time individual investors to purchase a company's stock directly from the company or without the direct intervention of a broker. The administrator also ensures the safekeeping of the shares by registering them directly on the books of the company. Eliminates the need for shareholders to hold on to physical certificates.