Direct Materials

Direct procurement encompasses items that are part of finished products, such as raw material, components and parts. Direct procurement is the focus in supply chain management and it directly affects the production process of manufacturing firms. It is a highly complex category and direct material sourcing spends are "high stakes" because they crucially affect supply chains, customer sales, and ultimately, the bottom and top lines. 

Having delivered multiple projects in more than 20 industries across multiple geographies including Americas, Europe and APAC, we have a deep understanding on this complex category and we can help your company tackle the challenges crucial to success of your company, being extensively involved in contract and vendor management, cash-flow improvement, sourcing, budgeting, reporting and other related activities thus providing a reliable and effective procurement process. 

Direct material supplier power should not be underestimated; manufacturing companies feel the pressure of the competition from emerging markets and taking measures such as collaborations that will lead to increased information sharing, pursuing higher procurement risk management etc. We know that for our clients it is crucial to build strong supplier relationship, minimize the supplier risk by having contingency plans in place.

Apart from strategies such as negotiating fixed prices along with periodical adjustments, establishing hedging initiatives and implementing advanced buy /sell processes, technology is also crucial to minimize the risks of fluctuations in the raw material prices. With our advanced technology, we can help your company manage this crucial spend in the most effective way.

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Learn more about GEP's expertise in direct materials sourcing.CONTACT US TODAY