Direct procurement refers to the purchasing of raw materials and parts needed for the manufacturing of finished goods. Automating direct procurement can enable faster cycle times, making a manufacturer more responsive to the market. Significant savings can be realized by optimizing the process of order submission and confirmation, as well as improved vendor collaboration. This results in fewer shortages of essential materials, thus reducing the need for large inventories required to pad the supply chain.

theSupplyChain.com's B2B infrastructure, the scEngine, is a good example of a comprehensive, direct procurement solution. Combining commerce functionality with features such as demand planning, materials requirements planning (MRP) and vendor managed inventory, the scEngine powers private trade environments tightening the bond between strategic trade partners