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"Direct" Spend Management: Optimizing spend and increasing direct material availability

In the last few years since the Great Recession, organizations have attempted to optimize supply chain operations and position themselves for growth over the next 3-5 years. This includes tapping “low-hanging fruit” in the optimization journey, largely in the indirect sourcing transactional services such as logistics. Procuring “direct” material, however, seems to be a relatively untapped opportunity for organizations to continue optimizing their supply chains. Inevitably, companies can benefit


Focusing on Availability and Spend Optimization
The relatively flat or negative growth estimates in developed economies and the slowing of growth in emerging economies has created significant uncertainty around demand for goods in the global economy. Consequently, producers are unable to forecast the demand for products across markets with reasonable accuracy. This uncertainty has had an impact on demand forecasts for “direct” material.


 

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