By Need
Direct Procurement

By assessing suppliers worldwide, leveraging the right platform and network and optimizing costs, you can move from a traditional approach to a more strategic approach to direct procurement and gain a competitive edge.
Direct procurement as a strategic advantage
Traditional approach: tactical, manual, inefficient
Traditionally, direct procurement has been viewed as tactical. All companies must acquire materials to manufacture finished goods, but this activity typically provides no real differentiation or competitive value. The usual process relies on siloed internal technology, such as enterprise resource planning (ERP) systems, to manage the data and primarily manual steps to move the process forward.
However, manufacturing has grown exponentially more complex, lead times are now tighter and competitive pressure is much greater. These dynamics present an opportunity to use direct procurement strategically. Yet outdated technology and manual processes can’t handle the scope and scale of what companies need to realize direct procurement’s full value.
A new strategy and new technology for today’s complexities
The level of agility required to capture growth opportunities—plus resiliency to manage today’s risks—requires a new way of thinking about direct procurement and its potential. Direct procurement teams should be able to orchestrate everything from onboarding thousands of suppliers in multiple tiers to collaborating with trading partners across all ecosystems. This includes ensuring that all parties can stay in sync on purchase order details, match purchase orders to shipments, receipts and invoices and manage inventory risk at any stage.
Leveraging these capabilities, you can empower your teams to see and manage beyond the enterprise and drive maximal value from direct procurement. New technology is required to support this strategy by equipping them with access to a large trading partner network to get the data they need along with integrated, purpose-built software applications for start-to-finish process orchestration.
The right technology for competitive advantage
No matter where you are in your direct procurement journey, choosing the right enabling technology is crucial for achieving competitive advantage. E2open brings all essential direct procurement functions together on a single operating platform connected to a global trading partner network to provide the data, applications and artificial intelligence (AI) required to transition your direct procurement processes and resources from tactical to strategic. With these broad and deep capabilities on one operating platform that grows with you as your business needs mature, you meet today’s requirements while equipping your organization for future success.
Essentials of strategic direct procurement
Transforming your company’s direct procurement processes from tactical to strategic requires an evaluation of where your department is today and where you want to be in the future. E2open provides essentials to help guide you on your journey.
Visibility
Gain end-to-end visibility through the entire supply network, including long-tail partners. This includes visibility into finished-goods inventory, components and materials held by suppliers at every tier so you can proactively manage shortages and excesses.
Alignment
With networks, size matters. Choose a large network with hundreds of thousands of partners across the specific ecosystems important for your business. This is essential for time-to-value, total cost of ownership and even the financial viability of most deployments.
Efficiency
Establish more effective processes by streamlining labor-intensive workflows to increase productivity and drive new efficiencies. For instance, you can easily set up an audit-ready, paperless workflow complete with validated, electronically signed and archived electronic invoices with compliance in over 50 countries. Another example is enabling trading partners to create carton-level shipment details on purchase orders, print their own labels and conduct four-way matching with ease.
Cost optimization
Achieve economies of scale and enhance profitability through the centralized purchasing of raw materials and products on the behalf of partners. You can reduce shipping time and costs by drop-shipping directly to customers, warehouses, plants, contract manufacturers and co-packers with orchestrated workflows among all parties. By easily viewing changes to bills of materials, related costs and cost forecasts, you can look for opportunities to enhance margins.
Video
Power of the network for direct procurement
Discover how you can use direct procurement strategically to enable the agility and resiliency that empower you to achieve growth and manage risk.


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Challenges of direct procurement
Overcome the challenges of direct procurement by effectively collaborating with partners, optimizing and automating for agility, and negotiating to maximize your buying power.
Resources
The Power of Multi-tier Supply Collaboration
For high-tech electronics manufacturers, multi-tier supply collaboration and visibility are the key to efficiency Manufacturing high-tech electronics is a lot like putting together a large jigsaw puzzle: You need to make sure you have all the pieces to complete the whole picture, and it’s a lot easier to put them together with a little help. High-tech brands often outsource production to component suppliers and contract manufacturers, so electronics manufacturing depends on smooth, multi-tier supply collaboration and deep insight across all tiers of the supply network. Download our solution brief to learn how e2open’s collaboration solutions ensure that brands have the right amount of visibility, sub-tier collaboration, and flexibility to deliver.
Intelligent Supply Collaboration for Automotive Manufacturers
Drive past supply road bumps with ease Automotive manufacturers and OEMs face increasing pressures in a dynamic industry – shrinking build cycles, shifting demand, regulatory changes, and rising risks threaten smooth operations. Effective supply collaboration is no longer optional. E2open’s intelligent supply collaboration solutions empower automotive manufacturers to optimize direct materials procurement, reduce inventory disruptions, and ensure compliance, all while improving supplier relationships and keeping customers happy.
Driving Success Through Multi-Tier Supplier Commitment
For over a century, this iconic American automaker has been synonymous with manufacturing innovation. But with increasing volatility and uncertainty, they faced a critical challenge: 95% of their finished vehicles were sitting idle for months due to missing components. The solution? A new approach to supplier commitment.
Pressing the Accelerator on Supply Chain Collaboration
A global mining and construction vehicle manufacturer known for producing top-tier mining and construction equipment relies on a vast supply network to keep their machines running smoothly. With thousands of suppliers, factories, and dealers scattered worldwide, maintaining clear visibility and seamless supply chain collaboration is crucial, especially when managing interdependencies within different tiers to ensure a reliable flow of goods.
IDC MarketScape: Worldwide SaaS and Cloud-Enabled Direct Spend 2024 Vendor Assessment
Why direct sourcing matters Every finished product – from smartphones to vehicles – relies on efficiently sourcing raw materials, components, and subassemblies. However, various events, such as non-compliance, logistical failures, labor strikes, capacity limitations or power outages, can significantly impact a supplier’s ability to fulfill an order. When such disruptions occur, direct sourcing falters, production lines stop, deadlines slip, and costs surge, costing companies millions in lost revenue. In addition, businesses are facing growing pressures for faster production cycles, while sustainability requirements add complexity to supplier selection and visibility. Direct sourcing is about more than just buying supply, components, or materials, it’s about building resilient supply chains that deliver a competitive advantage. As markets grow more volatile, the right direct sourcing strategy becomes essential for long-term success. Direct sourcing software is critical to manufacturing success Direct materials sourcing software is a critical cornerstone of successful manufacturing and supply chain operations. […]
IDC MarketScape: Worldwide Supply Chain Planning Overall 2024 Vendor Assessment
Advanced supply chain planning tools are fundamental The success of your supply chain is the key to the success of your business. As supply chains grow more intricate and complex, effective planning connected to efficient supply collaboration has never been more critical. From demand and supply planning to inventory optimization and sales operations, a holistic, integrated approach is essential for achieving resilience and agility. Why supply chain planning matters The right supply chain planning software can flip your supply chain from a cost center to a strategic opportunity center. A robust, data-driven planning system can help companies adapt to disruptions, forecast demand more accurately, optimize inventory, and synchronize operations.
Accelerate Growth with Efficient Supply Collaboration and Digitalization
E2open’s supply chain solutions help companies drive efficient supply collaboration, reduce costs, and enhance supply assurance through digitalization. By automating key processes and providing end-to-end visibility, businesses can: Digitalize and simplify the procure-to-pay process with Purchase Order Collaboration Keep pace with volatile demand with Supply Forecast Collaboration Minimize inventory liability and disruptions with Supply Inventory Collaboration Reduce compliance and supply assurance risk with Supply Network Discovery By transitioning from fragmented systems to e2open’s integrated, AI-powered platform, businesses can gain end-to-end control and make smarter, data-driven decisions to foster trust, efficiency, and resilience throughout the supply network.
Shadow Planning with a Digital Supply Chain Twin: Zebra’s Journey
Driving a high level of supply assurance requires a connected, streamlined approach with deep visibility into the multi-tier supply chain, enabled by collaboration with contract manufacturers and tier 1 and 2 suppliers. As the trusted brand for more than 80% of Fortune 500 companies for innovative technology solutions that digitize and automate workflows, Zebra understands the value of connected planning and supply to maintain customer satisfaction and a healthy bottom line. During this engaging on-demand webinar, you’ll learn about Zebra’s journey of building a digital supply chain twin and integrating a shadow planning process that lets the company monitor production in real-time, avoid potential disruptions, and ensure a more reliable flow of materials across the value chain. You will discover: The concept and practical application of shadow planning with a digital supply chain twin How to increase collaboration within the extended supply chain to drive supply assurance The […]
Navigating Outsourced Manufacturing: Visibility, Quality, & Sustainability
Working in Concert: How Supply Chain Planning Software Streamlined a US Audio Company
Learn how a combination of supply planning and collaboration provides control over component inventory liabilities and supply assurance Founded in 2002, this American audio equipment manufacturer is known for its high-quality wireless, multi-room audio systems. Partnering with leading music services, this organization has made significant strides in the audio industry. Their supply chain utilizes outsourced contract manufacturers (CMs) and requires constant management to ensure seamless component availability.
Resilient Supply Chains: Leveraging AI for Seamless Collaboration and Risk Management
Today’s supply chains continue to get more complex by the day: crushed in the middle of everchanging customer expectations, global complex supply networks, increased multifaceted risks, and shifting regulatory landscapes. The urgent need for supply chains to evolve through the adoption of AI and advanced systems leveraging multi-enterprise data is quite clear. But what is the blueprint of critical capabilities needed to future-proof our supply chains to drive agility and resilience while improving margins and growth in a rapidly changing world with increased dependency on factors outside of our control? Watch Mehmet Demirici, SVP, Global Presales Solutions Consulting from e2open discuss the need for supply chains to evolve with the adoption of AI and advanced systems leveraging multi-enterprise data.
Three Key Parts to Parts Shortage Management
Navigating the unpredictable terrain of critical parts shortages Today’s supply chain landscape is famously volatile and unpredictable with factors such as demand surges, natural disasters, and geopolitical unrest causing delays, disruption, and shortages. Managing parts shortages is a critical challenge that requires achieving multi-tier visibility, advanced re-planning or aligning, and collaborative execution framework. This ebook delves into key components of effective parts shortage management with practical solutions for brand owners and manufacturers to manage supply chain processes, enabling intelligent responses in an ever-evolving market. Download ebook to learn how collaborative execution strategies can help your brand optimize critical parts shortages management with agility, profitability, customer satisfaction, and resilience. Contact e2open to learn more.
How to Help Ensure Uninterrupted Production with Parts Shortage Management
Stop parts shortages before they start Parts shortages, like missing puzzle pieces, pose unique challenges for businesses because they can negatively impact all levels of production and fulfillment. But one company, renowned for barcodes, mobile computing, and RFID expertise, discovered how to predict and address inventory gaps by managing shortages efficiently. With the help of the e2open Supply Collaboration platform and supply assurance features, the company was able to proactively address parts storage challenges, mitigate the need for excessive safety stock, reduce the likelihood of stockouts, and minimize expediting expenses. To get the full story on how the company optimized inventory with precision, ensuring the right items are available at the right time, download the brief. Contact e2open to discuss how we can help you with an efficient supply chain that enhances supply readiness, resilience, and competitiveness.
3 Ways Supply Collaboration Can Pay You Dividends
Watch this LinkedIn Live session with Jeff Eckel, Dir. of Product Marketing at e2open, to learn about 3 use cases and how asking the right questions can help transform the way your organization makes, moves, and sells goods.
A Global Leader’s Transformation through Supply Network Collaboration
A Global Leader’s Transformation through Supply Network Collaboration As a global leader in providing comprehensive solutions for data centers, communication networks, and industrial facilities, this US-based company faced significant challenges in supply chain management with manual processes and fragmented communication across hundreds of suppliers. The lack of integration between different ERP systems and operational approaches further complicated their efforts, leading to inefficiencies and losses. Partnering with e2open enabled the company to implement advanced supply collaboration capabilities by leveraging e2net and Connected Supply applications. Implementing this new supply chain management resulted in: Amplified efficiency in supply orchestration Increased ability to meet customer demand Improved reporting capability from better visibility A single source of truth from shared decision-grade data Download the brief to learn more about how the company streamlined processes with enhanced visibility and connectivity. Contact e2open to discuss how your supply chain can operate with increased efficiency, agility, and resilience, […]
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