Rethinking Direct Materials Sourcing:The Tools You Need To Manage Costs, Risks and Sustainability

The article discusses the current challenges and changes in direct materials sourcing for procurement professionals. It highlights the shift from simply delivering items at a saving to achieving value while considering sustainability and managing risk. The article also mentions the rising input prices, supply chain disruption, and international politics that are impacting imports and creating shortages. The use of advanced technologies such as AI and blockchain is explored as a potential solution to manage global trade functions. However, many companies are still behind in adopting these technologies. The article concludes by suggesting that taking a fresh look at the sourcing strategy can generate operational improvements and boost job satisfaction.