Purchasing Management — A Driving Force to Exploiting Earning

Purchasing Administrators, purchasing agents and buyers are the life support system of your dịch vụ làm bằng supply archipelago. I often use the phrase in command training; “You’re only as good as the people you encircle yourself with. inch That phrase also applies to one of the most critical functions in wholesale distribution, the Purchasing Manager. So what does being the life span support systems to produce archipelago management mean? It means purchasing is the center of the universe, the equator, the fulcrum when it comes to meeting customer demands. This is a common fact. We all know it. Most of us say it and yet couple of us really understand it. Even the us Department of Labor Agency of Statistics supports it with reams of data on purchasing. However, the more important, often overlooked, misinterpreted and underutilized concept is that Purchasing Administrators in our industry are really the “Tendons and Muscles” that enhance earning within the supply archipelago itself.

Most of us “Talk the Talk” and can quote supply archipelago gospel. In fact, deep down we really do believe that earning in the industry is driven by the supply side of the picture. Yet, in reality, organic beef not really understand the truth value, the contributions, the skill set required for success and how to recognize or leverage talent within our own organization for this critical part of our overall success formula.

Supply Archipelago Management (SCM)

Understanding SCM is basic to understanding the required purchasing culture required to leverage our capacity to maximize profitable growth. It begins with understanding your markets, your customer base and the future of the industry. It is crucial that we understand SCM and how to create an effective purchasing culture that supports company strategic initiatives. This obviously includes exploiting profitable growth while maintaining first class service and customer care.

Keep in mind the fact that the supply archipelago will exist whether or not we have a qualified, Movie star Purchasing Manager running the buy side in our earning picture. (E-mail [email protected] com for a copy of the article “Margin Management–Using the Supplier Earning Ratio”) There are a number of educational descriptions of SCM published today for reference. However, I believe this is can be stated in these terms:

“Supply Archipelago Management is the coordination of partners between the manufacturer, importer, distributor and customer that results in exploiting growth, earning and customer care. inch

How do We Create the Successful Purchasing Culture?

The Purchasing Manager must get to be the Driving Force. Sometimes the simplicity of the answer lies within the intricacy of the question. Begin by asking the following questions:

  1. How was the Purchasing Manager selected?
  2. What criteria were used in the selection process?
  3. What kind of qualifications beyond seniority was taken to the table?
  4. What kind of training did the Purchasing Manager receive after being promoted?
  5. Does training include command skill development, coaching, mentoring, discussions, sales effectiveness and team development?
    Keep in mind that the purchasing environment at many companies is strictly determined by size and revenue stream of the organization. In larger organizations there is a distinction between the duties of a Purchasing Manager, a Buyer and a Purchasing Agent. And in some cases we just employ order placers with no responsibility for growth and earning.

Purchasing agents and buyers often focus on routine tasks and they may specialize in particular product lines or other groups of related items. The Purchasing Manager needs to pay attention to the strategic side of the business, tracking market trends, customer preferences, price trends, cost effectiveness and managing the supply archipelago. This includes evaluating and getting qualification vendor partners, improved discussions and the support of merchandising strategies. Critically important to creating a successful purchasing culture is their capacity to coach, mentor and train their buyers on creating earning, exploiting customer service and building relationship fairness with their own sales staff.

The Purchasing Management Movie star

Finding the right person to fill the critically important role of purchasing Manager can become quite a challenge. Often times there is a tendency to simply rely on stint, product experience and the thoughtful, often misdirected feelings of employee entitlement.

The proprietor —–“We have cultivated to the point that Purchasing Management needs as a strategic effort. Let’s promote Old Joe, he’s been with us for 22 years now and has been handling the item side in our business for the past fifteen years. inch

The VP of Sales —- “But Joe doesn’t have any formal management training and some in our sales guys think he’s a real pain! He’s doesn’t understand cost effectiveness and lacks creativity. Remember the major problem we had with your number 1 supplier. inch

The proprietor — “Hey, he’s been with me for 22 years. He deserves a promotion. We can send him to a workshop on time Management. inch

Some of you readers may observe that conversation however many may not recognize the misconceptions that lie within it. In wholesale distribution, it seems that the primary prerequisite for becoming a Purchasing Manager is being a buyer for the company and having long stint… Promoting our senior buyer to Purchasing Manager simply due to how long they’ve been with the company is a common mistake. This disbelief is often based on the lack of understanding about the critical nature of the position and how it should contribute to the overall success of the organization.

Different Skill Sets

It is an undisputable fact that different skill sets must be a successful Purchasing Manager as compared to being a successful buyer. Purchasing is a profession that needs professionals. Managing a small grouping of professionals with the type of individuality required to succeed sandwiched between the needs of the sales staff, the wants of the vendor partners and the obligation to be cost effective, competitive in the market place and maximize growth and earning is not an ordinary challenge. Yet, in my simple opinion, it is probably one of the most important management positions you can hold in a company. Purchasing Management holds the key to meeting company objectives. Effective Purchasing Management builds the platform for success.

Don’t cringe; Purchasing Administrators need to have a sales personality before they can really understand the science of selling in the wholesale distribution industry. This is a prerequisite to building an effective, supportive purchasing organization that develops policy and procedure, creates an inexpensive process, works out a deal beyond the sticker price, develops a staff that understands the requirement of relationship fairness with the internal sales staff and lays eyes upon the concept of purchasing strategies that are in positioning with company strategy. This sales DNA can be purchased in handy for the development of true partners with vendors and gain the respect of the company’s sales staff.

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