Five Strategies for Effective Raw Material Procurement PPT

This PPT slide, part of the 20-slide Raw Material Management PowerPoint presentation, outlines 5 key procurement strategies aimed at managing raw material risk, emphasizing the need for a comprehensive approach to supply chain innovation and transparency. The central theme is that effective raw material procurement can significantly lower costs and mitigate supply-demand imbalances.

The first strategy, "Strategically define the deal," suggests that manufacturers should carefully structure procurement agreements to optimize input costs. This involves understanding market dynamics and crafting deals that are beneficial in the long term.

"Foster strategic alliances" is the second strategy, highlighting the importance of building long-term relationships with key suppliers. Such alliances can secure stable contracts and ensure a consistent supply of raw materials at lower costs.

The third strategy, "Build up the supplier base," encourages manufacturers to develop relationships with new suppliers. This diversification can enhance bargaining power and reduce dependency on a limited number of sources, thereby lowering costs and ensuring supply security.

"Integrate vertically" is the fourth strategy, which advocates for backward integration. This means manufacturers should consider acquiring or merging with suppliers to gain direct control over raw material sources, further stabilizing supply chains.

Lastly, "Redefine demand" suggests that manufacturers can adjust product design and production processes to minimize reliance on scarce raw materials. This flexibility can lead to reduced risk exposure and better management of price fluctuations.

Overall, the slide provides a structured framework for organizations looking to enhance their procurement strategies, ensuring they remain resilient in the face of raw material challenges. Each strategy is interconnected, reinforcing the need for a holistic approach to raw material management.

This slide is part of the Raw Material Management PowerPoint presentation.

Download the Full Presentation

EXPLORE MORE SLIDES FROM THIS PRESENTATION

EXPLORE MORE PRESENTATIONS ON

Manufacturing Procurement Strategy Supply Chain Innovation Production

Are you familiar with Flevy? We are you shortcut to immediate value.

Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations

Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.

Flevy is the world's largest knowledge base of best practices.

Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.

Read Customer Testimonials

"I have used FlevyPro for several business applications. It is a great complement to working with expensive consultants. The quality and effectiveness of the tools are of the highest standards."

– Moritz Bernhoerster, Global Sourcing Director at Fortune 500

"FlevyPro provides business frameworks from many of the global giants in management consulting that allow you to provide best in class solutions for your clients."

– David Harris, Managing Director at Futures Strategy

"Flevy.com has proven to be an invaluable resource library to our Independent Management Consultancy, supporting and enabling us to better serve our enterprise clients.

The value derived from our [FlevyPro] subscription in terms of the business it has helped to gain far exceeds the investment made, making a subscription a no-brainer for any growing consultancy – or in-house strategy team."

– Dean Carlton, Chief Transformation Officer, Global Village Transformations Pty Ltd.

"As a consulting firm, we had been creating subject matter training materials for our people and found the excellent materials on Flevy, which saved us 100's of hours of re-creating what already exists on the Flevy materials we purchased."

– Michael Evans, Managing Director at Newport LLC

"As a young consulting firm, requests for input from clients vary and it's sometimes impossible to provide expert solutions across a broad spectrum of requirements. That was before I discovered Flevy.com.

Through subscription to this invaluable site of a plethora of topics that are key and crucial to consulting, I

... [read more]

– Nishi Singh, Strategist and MD at NSP Consultants

"I like your product. I'm frequently designing PowerPoint presentations for my company and your product has given me so many great ideas on the use of charts, layouts, tools, and frameworks. I really think the templates are a valuable asset to the job."

– Roberto Fuentes Martinez, Senior Executive Director at Technology Transformation Advisory

"As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value."

– David Coloma, Consulting Area Manager at Cynertia Consulting

"I have found Flevy to be an amazing resource and library of useful presentations for lean sigma, change management and so many other topics. This has reduced the time I need to spend on preparing for my performance consultation. The library is easily accessible and updates are regularly provided. A wealth of great information."

– Cynthia Howard RN, PhD, Executive Coach at Ei Leadership