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This presentation identifies some key findings regarding direct material procurement:
• 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
This document was developed by a leading strategy consulting firm. The best practices can be used to manage costs and develop competitive advantages.
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Source: Best Practices in Strategic Sourcing PowerPoint Slides: Best Practices in Direct Material Procurement PowerPoint (PPT) Presentation, Documents & Files
AUTHOR: DOCUMENTS & FILES
Documents & Files has published 130 additional documents on Flevy.
This business document is categorized under the function(s): Organization, Change, & HR Strategy, Marketing, & Sales
It applies to All Industries
File Type: PowerPoint (ppt)
File Size: 725 KB
Number of Slides: 49 (includes cover, transition, & marketing slides)
Related Topic(s): Strategic Sourcing
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Initial upload date (first version): Apr 27, 2014
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