Direct Materials Sourcing

A focused view of sourcing solutions that emphasize bill-of-materials (BoM) management, cost modeling, SCM/PLM integration (process and data) and other aspects related to the acquisition of direct materials and to the design of the extended inbound supply network.

^*See^{Sourcing Optimization}^{for the sourcing of direct services such as complex logistics.}

Why invest in Direct Materials Sourcing technology?

As the volumes and complexity of the data for direct materials sourcing (especially at large manufacturers) can be overwhelming, direct sourcing solutions enable integration into a company’s PLM, SCM and ERP systems, finished goods modeling, risk and category impact analysis and linkages to customer quoting processes — for better predictive cost analytics, forecasting and to identify (category/supplier management) value-creation opportunities.

Why selecting the right Direct Materials Sourcing Technology can be difficult

Capability support

Understanding which vendors support the specific capabilities of direct materials sourcing — and at what level.

Managing impact

Selecting the right solution to help you effectively manage the impact of direct materials sourcing on your company’s (new and existing) products and customers, including optimizing for cost and risk.

Strategic integration

Developing solution strategies and vendor selections that meet procurement’s direct sourcing needs, but also integrate into NPDI and SCM (e.g., supply planning and supply chain risk/resilience) processes and systems of other functions.

Top 5 Direct Materials Sourcing Tech Capabilities

Learn more about Direct Materials Sourcing tech capabilities and discover the importance of capabilities in your technology selection.

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top capabilities of Direct Materials Sourcing chart

Spend Matters intelligence helps you identify which solutions enable you to:

Manage NPI (new product introduction) programs and value engineering of existing products with detailed cost and TCO modeling and supplier collaboration/innovation.

Perform BoM-based sourcing events individually and globally (program level) with deep analysis of bids.

Integrate with other systems (PLM, SCM, ERP, etc.).

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