What is a direct materials budget?
Procurement professionals use a direct materials budget to calculate how much raw materials they must buy within a certain period to meet a production budget.
Direct materials spending is considered critical as it can affect supply chains, customer sales, and, therefore, the top and bottom lines of an enterprise. Managing direct spending is not just a priority for highly dynamic business environments; it’s a way to gain strategic competitive advantage.
Learn more about the supply chain and procurement software solutions offered by GEP.
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World's Leading, Unified Source-to-Pay Platform for Direct and Indirect Spend Management
GEP SMART is an AI-powered, cloud-native source-to-pay platform for direct and indirect procurement. GEP SMART offers comprehensive source-to-pay functionality in one user-friendly platform, inclusive of spend analysis, sourcing, contract management, supplier management, procure-to-pay, savings project management and savings tracking, invoicing and other related functionalities.
Next-Gen, End-to-End Supply Chain Management Platform for the Connected Enterprise
GEP NEXXE is a unified and comprehensive supply chain platform that provides end-to-end planning, visibility, execution and collaboration capabilities for today’s complex, global supply chains. Built on a foundation of data, artificial intelligence and cognitive technologies, GEP NEXXE helps enterprises digitally transform their supply chains and turn them into a competitive advantage.