Improve Direct Materials Sourcing and Commodities Procurement
The Direct Materials Sourcing Challenge
For manufacturers in every industry, direct material sourcing spends are "high stakes" because they so crucially affect their supply chains, customer sales, and ultimately, the bottom and top lines. Accounting for anywhere from 20% to 80% of the cost of finished goods, the direct materials that make up the final product sold to the market often include commodity items where the price is beyond the immediate control of the manufacturer. Direct material spends may also include highly specialized components that are served by a single or select few suppliers.
An e-sourcing solution for Your Direct Materials and Commodities Procurement Challenges
CombineNet’s advanced e-sourcing product, CombineNet ASAP®, opens the sourcing process between your sourcing team and suppliers of direct materials (and other spend categories) to a more collaborative, creative and expressive marketplace – we call it Expressive Bidding®. Within the Advanced Sourcing process enabled by CombineNet ASAP, sourcing teams can explore the opportunities to reduce costs and create efficiencies on direct material cost elements, as well as make "total value" decisions that include non-cost elements of suppliers’ bid information.
CombineNet has a long and successful history of improving direct material sourcing, commodities procurement and spend management for manufacturers in a range of industries, including automotive, heavy machinery, consumer packaged goods, food and beverage, quick service and casual restaurants, energy, chemicals, industrial parts, coatings, and more.
How CombineNet Improves the Sourcing of Direct Materials:
Through CombineNet ASAP’s advanced optimization-enabled analytics, your sourcing and supply chain teams can weigh the potential cost savings of these supply options against risks, switching costs, and other decision factors to understand the total cost impact on your organization.
- Create Flexible, Comprehensive Online RFIs and RFPs
- Mitigate Risk by Collecting and Analyzing Various Price and Non-Price Risk Drivers
- Support Complex Cost Models
- Increase Supplier Competition
- Improve Stakeholder Collaboration