Direct procurement: how technology and collaboration can increase efficiency

How can procurement management with a focus on production materials or direct materials be made more efficient and agile, thereby increasing resilience? This question is currently on the agenda of many companies. Direct procurement - the procurement of materials and goods that are directly required for the creation of end products - is a key focus as an integral part of the business process.

Together with our alliance partner Coupa, our experts have now analysed various aspects that need to be considered when optimizing direct procurement in the white paper "Optimization of Direct Procurement through collaboration and technology". They explain current trends and identify fields of action in which companies can find value levers.

Direct procurement plays a central role in the manufacturing industry in particular. Cost-effectiveness, security of supply and high quality of goods are key aspects that must be guaranteed. Sustainability aspects must also be taken into account in the supply chain.

That in itself is a complex situation. There are also risks ranging from volatile global markets and growing consumer expectations to ESG regulation and rapid technological progress. At the same time, there are great opportunities. But where can companies take ad hoc action? Our authors highlight six fields of action and explain their significance using real-life customer examples:

• Strategic procurement combined with holistic risk management
• Collaboration in the supply chain
• Comprehensive analysis of digital data
• Flexible end-to-end operating model
• Advanced supplier discovery
• Employee training

A preliminary study is useful for the successful implementation of optimization steps. The preliminary study makes it possible to determine the status quo and serves as a starting point for planned transformation projects.

It is important to note that several elements are essential, including the definition of success parameters. This makes it possible to measure whether the identified value levers have actually been realized through the transformation.