Commodities, energy and raw materials (« direct materials » for short) represent the bulk of direct costs for industrial companies. Yet most procurement teams rely on dated methods for deciding when and how much to buy — such as replenishment rules, market research or human expertise.
Coupled with increased instability on direct material markets, this results in inflated costs and increased risk exposure. Very unfair, given the time, intelligence and effort invested by procurement teams.
Datapred’s dynamic procurement software uses machine learning to generate an optimal purchasing program shaving 3-5% off your direct material costs. Datapred also provides the corresponding risk management tools and hedging instruments.