What distinguishes goods from services in procurement?

The distinguishing feature of goods in procurement is their physical nature, which means they can be touched, stored, and inventoried. Goods include tangible items such as raw materials, machinery, or products that can be sold directly to customers. On the other hand, services are inherently intangible; they cannot be physically possessed and are typically consumed at the point of delivery. This fundamental difference influences various aspects of procurement, such as storage, handling, and the methods used for supply chain management.

The other options do not accurately capture the primary distinction between goods and services. While pricing can vary widely across both categories, it is not a determining factor in their classification. Similarly, the temporality or permanence of goods and services is not universally applicable and varies by context. Additionally, the distinction of being manual versus automated is not a characteristic that categorically defines goods and services, as both can involve a combination of manual and automated processes depending on the specific context and industry involved.