Digital Transformation for Direct Materials Sourcing – Part 5: Negotiating Component Prices with Better Digital Processes
In the last two years, many organizations have realized that their digital transformation was not as far along as they thought. Direct materials sourcing and procurement processes were one area where digital transformation was lacking. A recent survey found: Based on the survey, organizations that actively transform their procurement processes are more likely to maintain […]
Digital Transformation for Direct Materials Sourcing – Part 4: Design for Supply
Remember when engineers designed electronics and set a bill of materials (BOM), and then procurement went out to find the parts at the lowest possible cost? Design for manufacturing and assembly had one goal: to deliver products at the lowest possible costs. As part of that process, engineers were concerned with design, materials, and assembly. […]
Digital Transformation for Direct Materials Sourcing – Part 3: Democratize Your Data
Democratizing data is one of the top trends in 2022. A recent survey found that 90% of 500 executives surveyed have prioritized data democratization for their organizations. Yet, 75% of business executives admit few data projects produce actionable insights. Despite the promise of better decision-making, improved efficiency, and faster pivoting, only 60% of respondents say […]
Digital Transformation in Direct Materials Sourcing – Part 2: Implementing Quarterly Negotiation to Improve Cost Savings
Let’s face it: supply chain disruption is now an everyday fact of life for manufacturing companies around the world. With recent events in the Ukraine and China, the massive wave of uncertainty and chaos surrounding COVID-19 isn’t isolated to the rare pandemic. Sociopolitical frictions, war, disease, acute weather events, and millions of other small and […]
Digital Transformation for Direct Materials Sourcing – Part 1: Spend Visibility
Successful companies have always been concerned with clarity regarding their spending patterns. For modern enterprises, having a good understanding of what they’re buying, from whom, at what price, and at what level of risk, is indispensable for long-term survival. Having good spend visibility is even more crucial for manufacturers. Direct materials can account for as […]
How to Resolve Part Shortages Using Sourcing Software
Most companies today still search for parts one by one and don’t have a solution to help automate the process. However, there is a much better approach that companies can take to resolve part shortages. While it’s often challenging to get a comprehensive, holistic view of part locations and mitigate risk, Part Analytics can simplify the process in a number of ways. Here we’ll go over the benefits of integrating Part Analytics into your company’s operations.