In the supply chain context, “direct materials” refer to the raw materials or components that are directly used in the production of a finished product. These materials are distinct from indirect materials, which are used in the production process but are not directly incorporated into the final product.
For example, in the manufacturing of a smartphone, the direct materials would include components like the screen, processor, battery, camera, and other essential parts that physically make up the device. Indirect materials, on the other hand, might include items like cleaning supplies, lubricants, or tools used during the manufacturing process, but not directly integrated into the smartphone itself.
Managing direct materials effectively is crucial in supply chain management, as it involves ensuring a steady and reliable supply of these materials to meet production demands while controlling costs and maintaining product quality.
ZFlow is an excellent solution for end-to-end coordination of the Direct Material Supply Chain.