The unprecedented low price of oil has plunged manufacturing companies who supply the oil and gas sector into a financial crisis. Declining sales are putting pressure on them to reduce costs. Direct materials account for a large percentage of their external spend. These complex sourcing categories are typically de-centrally managed at the plant level, requiring cross-functional collaboration between local technical and engineering teams who rely heavily on suppliers’ input and expertise. This session was aimed at sourcing professionals who are interested in innovative solutions that capture sustained year-on-year cost savings on direct materials and will explore organizational models to effectively deliver them.

Topics covered in this session included:

• How to source complex direct materials for an industry in crisis
• How to build a supporting organization
• How to manage risk under these circumstances
• How to drive compliance and sustained value-add

Categories: 2016 Fall - Carlsbad, Summit Presentations
SRC Type: Category Specific, Corp Services Spend