Direct material sourcing is an important business practice that involves the acquisition of raw materials, components, and supplies necessary for a company to produce and sell its products. It is the process of selecting and purchasing materials and supplies that fit the company’s specifications, at the right price, and in the right quantity. It involves the identification of suppliers and materials, the negotiation of prices and terms, the evaluation and selection of the best supplier, and the development of a long-term relationship with that supplier. It is also important to source in a timely manner, as this will help to ensure that production and delivery of goods is not delayed.
The primary objectives of direct material sourcing are to minimize cost and ensure quality while meeting customer demands. This involves the evaluation of a supplier’s ability to provide the right materials, at the right price, and in the right quantity. It also involves the evaluation of a