The public business organization that I choose in the cement
manufacturing plant, Cemex.
The raw materials like limestone, pozzolans and clay are
sourced from abroad.
The direct materials that the company outsources are cement
additives and the cement packaging bags.
This presentation explains the outsourcing process in the
Outsourcing of direct materials is an important process
It has to be performed effectively to ensure the materials
are delivered on time and they are of the right quality
The direct materials outsourced by Cemex are leverage
They are of high value to the consumers, but have no risk
in the supply as they are readily available.
The outsourcing process of raw materals is
interdepartmental (Biazzin, 2019).
The Inventory Department performs daily inventory and
check if the products are of sufficient quantity.
If they are not sufficient for the production process, they
send a purchasing request (PR) to the Purchasing
The details of the PR are the direct materials that need
critical replenishing for the production process to resume
The Purchasing Department at Cemex then prepare a
purchasing order of the required materials.
The company does not have a single supplier, and potential
suppliers undergo the Supplier Selection Process.
The best suited supplier is chosen.
This process is to ensure the best suppliers are chosen to
provide high quality materials with reasonable prices.
The chosen supplier then delivers the ordered direct materials.
In case of overseas suppliers, freight transport is used to ensure
safety (Konings et al., 2008)
The Quality Control Department is called upon to perform
quality inspection of the materials.
The additives undergo laboratory testing to ensure they are of the
The cement bags have to be resilient and not tear easily.
The products have to be up to the company’s standards before they
Materials that do not meet the required standards are returned
to the supplier.
The Inventory Department handles the materials that have
been accepted by the Quality Control Department.
The supplies are paid for the accepted materials, based on the
agreements made beforehand.
Outsourcing has the benefit of ensuring that one acquired high
quality materials (Schiele, 2019).
The Inventory Department then records the accepted materials
as inventory stock.
The department gives a green light to the Production
Department to use the raw materials for manufacturing.
From there, the cement additives such as the accelerators,
retarders and other chemical components can be used during
The cement bags can be used after the manufacture of cement.
The suppliers provide the outsource services.
The selection of the suppliers is a rigorous process to ensure
the materials received are of high quality.
For the cement additives, the suppliers are usually companies
that specialize in manufacturing of chemical compounds.
For the cement bags, the suppliers are companies that
specialize in making cement bags.
The direct materials that Cemex outsourced
-Fluid loss additives
Outsourcing is an important component of an organization,
because it enables a business to acquire materials that they do
For Cemex cement manufacturing company, they outsource
the cement additives needed for manufacture and the cement
The process of outsourcing is; the Inventory Department does
daily checks and alert the Purchasing department in case of
any need. The suppliers are selected, and the Quality Control
Department ensure the materials are of quality.
The Production Department then starts the production
process with the accepted materials.
Pheasey D. (2016). A practical introduction to supply chain. CRC Press.
Retrieved January 5 2023 from
Schiele, H. (2019). Purchasing and supply management. In Operations,
logistics and supply chain management (pp. 45-73). Springer, Cham.
Biazzin, C. (2019). The role of strategic sourcing in global supply chain
competitiveness. In Managing Operations Throughout Global Supply
Chains (pp. 159-180). IGI Global. https://www.igiglobal.com/chapter/the-role-of-strategic-sourcing-in-global-supplychain-competitiveness/231701
Konings J. W. Priemus H. & Nijkamp P. (2008). The future of intermodal
freight transport : operations design and policy. Edward Elgar.