Best Practices in Direct Material Procurement (PowerPoint PPT)

This PowerPoint presentation identifies some key findings regarding Direct Material Procurement and Sourcing:

•  Key success criteria of direct procurement are on-time delivery and high-quality, not low costs
•  To achieve this, close relationships with the suppliers are necessary that need to be built up from the early product development phase onwards
•  However, relationships with direct material suppliers are complex and hence not obvious to handle
•  Direct material procurement begins with the early stage of product development and is of strategic importance throughout the product lifecycle
•  OEMs select, monitor and control suppliers beyond their first tier suppliers and focus besides contract manufacturers in particular on core component manufacturers
•  Throughout the production phase an open exchange of information with suppliers is the key success factor to manage the supply chain

Organizations engage in Direct Material Procurement initiatives for a variety of reasons—foremost, being realizing significant cost reductions. Direct Material Sourcing is often a significant expense for organizations and engaging in Procurement Transformation can help reduce costs through negotiation, supplier consolidation, and procurement process optimization. Additionally, these efforts can provide the benefits of improved supplier relationships, risk management, innovation, strategic alignment, and sustainable procurement.

This presentation delves into the advantages of direct procurement and explain how to manage direct procurement effectively. It also delineates a number of B2B solutions; as well as provides several best practice industry examples in great depth and shows why we need to have a Procurement Strategy first.

The detailed case study breaks down the 7-phase procurement process that drives successful Procurement Transformation:

1. Procurement Strategy Design
2. Supplier Selection
3. Material Specification
4. Forecasting
5. Procurement
6. Fulfillment
7. Supplier Development

This PowerPoint presentation was developed by a leading global strategy consulting firm. With clear, concise, yet detailed information and engaging business visuals, this presentation is the optimal resource for procurement and sourcing specialists looking to optimize their Direct Procurement Strategies. These direct procurement best practices can be used to manage costs and develop competitive advantages.

The presentation highlights the importance of accurate forecasting and transparency in supply chains to ensure timely delivery and high-quality standards. It also emphasizes the need for integrated procurement solutions and intimate supplier networks to reduce costs and enhance supplier relationships.