New Platform Capabilities are Required: Direct Materials Sourcing (Part 2) [Plus+]

direct materials sourcing Maksym Dykha/Adobe Stock

Our experience across procurement and supply chain design and engineering teams leads us to suggest that we can effectively segment the tools in the market into categories in a way that provides little overlap between each of the areas, at least today. In this post, we define and briefly describe six major solution areas before getting into specifics in our next posts. It is likely if your company is in the manufacturing business, or works with contract manufacturers to produce its products, that there are elements of solutions in each of these areas that you’ll be able to call upon as you consider your direct materials sourcing procurement capabilities and solution architecture. Just be sure not to ignore the touch-points between the various toolsets — not to mention integration with ERP/MRP, CAD/PLM, inventory/supply chain systems, supplier systems of record and third-party data enrichment, when available and applicable.

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