Direct procurement: how technology and collaboration can improve efficiency

How can you make procurement more efficient and more agile with a focus on production materials and direct materials and, in turn, increase resilience? This question is on many companies' agenda at the moment. As an integral part of the business process, there is particular focus on direct procurement – the procurement of materials and goods directly required to make end products.

Together with our alliance partner Coupa, our experts have analysed aspects to be taken into account when optimising direct procurement in the white paper “Optimization of direct procurement through collaboration and technology”. They discuss current trends and identify action areas where companies can find value levers.

Direct procurement plays a particularly key role in the manufacturing industry. Cost effectiveness, reliable supply and high-quality goods are essential. Supply chain sustainability must also be taken into account. 

That is already a complex issue in its own right. On top of this come risks ranging from volatile global markets and increasingly high consumer expectations to ESG regulations and rapid technological advances. At the same time, there are huge opportunities. But where can companies harness these on an ad hoc basis? Our authors outline six action areas and explain their importance using real customer case studies:

• Strategic purchasing combined with holistic risk management
• Supply chain collaboration
• In-depth analysis of digital data
• Flexible end-to-end operating model
• Advanced sourcing and supplier discovery
• Upskilling talents

A preliminary study is helpful for successfully optimising the various stages. The preliminary study sets out the status quo and serves as a starting point for planned transformation projects. 

It is important to remember that several elements are essential here, including setting success parameters. These measure whether the transformation actually achieved the value levers identified.