Direct Materials Sourcing: Putting a Price on Subjective Criteria

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In this last segment of MetalMiner’s interview with Olivier Maurandy of Fullstep, we try to get at how an effective process can address subjective elements of sourcing.

When it comes to subjective variables and the subsequent value placed on them, Maurandy said, “We run into that a lot especially with mid-market companies — say, between $50 million and $500 million — because in that category you have companies that are family-owned, or are really well-implanted in a local area, and have a lot of local suppliers.”

Bottom line, any sourcing manager must take subjective attributes into account to streamline their spend, mitigate commodity risk and improve margins.

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