It’s nearly impossible — that is, if done right — to separate out direct materials procurement strategy from commodity management (inclusive of commodity, raw material and ingredient sourcing). Yet far too many procurement and supply chain organizations we see take a less-than-scientific approach to commodity buying strategies. (And no, for those technology-centric organizations, simply buying a commodity management solution to manage exposure and positions is not a strategy — it’s merely a tool.) This two-part Spend Matters Plus series takes aim at a lack of standardization in strategy development for commodity buying by urging procurement organizations to ask — and answer — four core questions necessary to develop a commodity buying strategy.
Direct Materials Procurement Strategy: 4 Questions Every Commodity Buyer Needs To Ask (Part 2) [Plus+]
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