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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 Direct Material Procurement PowerPoint document

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Best Practices in Direct Material Procurement

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This business document is categorized under the function(s):

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File Type: PowerPoint (ppt)

File Size: 725 KB

Number of Slides: 49 (includes cover, transition slides)

Related Topic(s): Strategic Sourcing

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Initial upload date (first version): Apr 27, 2014

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