| Purchasing Managers, purchasing agents
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| | our number one supplier."The Owner ---
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| and buyers are the life support system of
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| | "Hey, he's been with me for twenty two
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| your supply chain. I often use the phrase
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| | years. He deserves a promotion. We can
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| in leadership training; "You're only as
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| | send him to a seminar on Time
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| good as the people you surround yourself
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| | Management."Some of you readers may
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| with." That phrase also applies to one of
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| | recognize that conversation however many
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| the most critical functions in wholesale
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| | may not recognize the fallacies that lie
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| distribution, the Purchasing Manager. So
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| | within it. In wholesale distribution, it
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| what does being the life support systems
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| | seems that the primary prerequisite for
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| to supply chain management mean? It means
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| | becoming a Purchasing Manager is being a
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| purchasing is the center of the universe,
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| | buyer for the company and having long
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| the equator, the fulcrum when it comes to
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| | tenure... Promoting our senior buyer to
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| meeting customer demands. This is a
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| | Purchasing Manager simply due to how long
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| common fact. We all know it. Most of us
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| | they have been with the company is a
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| say it and yet few of us really
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| | common mistake. This misconception is
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| understand it. Even the US Department of
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| | often based on the lack of understanding
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| Labor Bureau of Statistics supports it
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| | about the critical nature of the position
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| with reams of data on purchasing.
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| | and how it should contribute to the
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| However, the more important, often
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| | overall success of the
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| overlooked, misunderstood and
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| | organization.Different Skill SetsIt is an
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| underutilized concept is that Purchasing
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| | undisputable fact that different skill
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| Managers in our industry are really the
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| | sets are required to become a successful
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| "Tendons and Muscles" that enhance
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| | Purchasing Manager as compared to being a
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| profitability within the supply chain
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| | successful buyer. Purchasing is a
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| itself.Most of us "Talk the Talk" and can
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| | profession that requires professionals.
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| quote supply chain gospel. In fact, deep
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| | Managing a group of professionals with
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| down we really do believe that
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| | the type of personalities required to
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| profitability in the industry is driven
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| | succeed sandwiched between the needs of
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| by the supply side of the equation. Yet,
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| | the sales force, the needs of the vendor
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| in reality, we may not really understand
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| | partners and the obligation to be cost
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| the true value, the contributions, the
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| | effective, competitive in the market
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| skill set required for success and how to
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| | place and maximize growth and
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| recognize or leverage talent within our
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| | profitability is not an ordinary
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| own organization for this critical piece
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| | challenge. Yet, in my humble opinion, it
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| of our overall success formula.Supply
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| | is probably one of the most important
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| Chain Management (SCM)Understanding SCM
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| | management positions you can hold in a
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| is basic to understanding the necessary
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| | company. Purchasing Management holds the
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| purchasing culture required to leverage
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| | key to meeting company objectives.
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| our ability to maximize profitable
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| | Effective Purchasing Management builds
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| growth. It begins with understanding your
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| | the platform for success.Don't cringe;
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| markets, your customer base and the
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| | Purchasing Managers need to have a sales
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| future of the industry. It is critical
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| | personality before they can really
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| that we understand SCM and how to create
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| | understand the science of selling in the
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| an effective purchasing culture that
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| | wholesale distribution industry. This is
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| supports company strategic initiatives.
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| | a prerequisite to building an effective,
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| This obviously includes maximizing
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| | supportive purchasing organization that
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| profitable growth while maintaining world
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| | develops policy and procedure, creates a
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| class service and customer
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| | cost effective process, negotiates beyond
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| satisfaction.Keep in mind the fact that
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| | the purchase price, develops a staff that
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| the supply chain will exist whether or
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| | understands the necessity of relationship
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| not we have a competent, Superstar
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| | equity with the internal sales force and
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| Purchasing Manager running the buy side
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| | embraces the concept of purchasing
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| of our profitability equation. (E-mail
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| | strategies that are in alignment with
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| for a copy of the article "Margin
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| | company strategy. This sales DNA will
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| Management--Using the Supplier
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| | come in handy for the development of true
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| Profitability Ratio") There are a number
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| | partnerships with vendors and gain the
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| of academic definitions of SCM published
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| | respect of the company's sales
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| today for reference. However, I believe
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| | force.Experience in the industry is
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| the definition can be stated in these
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| | critical and a college education is a
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| terms:"Supply Chain Management is the
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| | foundation to build upon. The building
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| coordination of partnerships between the
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| | blocks should include:- Leadership Skill
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| manufacturer, importer, distributor and
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| | Development
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| customer that results in maximizing
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| | - Mentoring & Coaching Skills
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| growth, profitability and customer
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| | - Sales Effectiveness Understanding
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| satisfaction."How Do We Create the
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| | - Purchasing Certifications (CPM, APP,
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| Successful Purchasing Culture?The
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| | CPP etc)
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| Purchasing Manager must become the
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| | - Organizational Skills
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| Driving Force. Sometimes the simplicity
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| | - Scenario Planning
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| of the answer lies within the complexity
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| | - Strategic Thinking Skills
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| of the question. Start by asking the
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| | - Time Management
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| following questions:1. How was the
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| | - Operational Analytical SkillsSuper
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| Purchasing Manager selected?
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| | Star Characteristics- Highly Self
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| 2. What criteria were used in the
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| | Motivated
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| selection process?
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| | - Optimistic
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| 3. What kind of qualifications beyond
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| | - Excellent Leadership Skills
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| seniority was brought to the table?
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| | - Skilled at Coaching & Mentoring
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| 4. What kind of training did the
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| | - Calculated Risk Taker
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| Purchasing Manager receive after being
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| | - Listens Well --- 80% of the Time
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| promoted?
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| | - Plans Well
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| 5. Does training include leadership
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| | - Ability to Think Outside the Box
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| skill development, coaching, mentoring,
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| | Because They Know What Goes on Inside the
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| negotiations, sales effectiveness and
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| | Box
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| team building?Keep in mind that the
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| | - Excellent Communicator
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| purchasing environment at many companies
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| | - Inspires Excellence in Others
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| is strictly determined by size and
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| | - Strong Social and Interpersonal Skills
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| revenue stream of the organization. In
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| | - Commands a Presence
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| larger organizations there is a
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| | - Honesty
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| distinction between the duties of a
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| | - Integrity
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| Purchasing Manager, a Buyer and a
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| | - Embraces Accountability for Self and
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| Purchasing Agent. And in some cases we
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| | Purchasing PersonnelStop and ThinkWhen
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| just employ order placers with little or
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| | the time comes for your company to create
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| no responsibility for growth and
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| | the position of Purchasing Manager or
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| profitability.Purchasing agents and
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| | perhaps you realize it is time to
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| buyers often focus on routine tasks and
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| | redefine what purchasing management is
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| they may specialize in particular product
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| | all about --- Stop and Think; or, as
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| lines or other groups of related
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| | Lieutenant General Russell Honore so
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| commodities. The Purchasing Manager needs
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| | eloquently stated during the Katrina
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| to focus on the strategic side of the
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| | crisis, "Don't Get Stuck on Stupid".
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| business, tracking market trends,
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| | Think about the real value Purchasing
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| customer preferences, price trends, cost
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| | Management should bring to the company.
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| effectiveness and managing the supply
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| | Think about leverage, profit
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| chain. This includes evaluating and
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| | opportunities, merchandising and product
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| qualifying vendor partners, improved
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| | creativity. Think about, cost
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| negotiations and the support of
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| | effectiveness, relationship equities and
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| merchandising strategies. Critically
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| | most importantly, think about the
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| important to creating a successful
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| | individual requirements necessary to
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| purchasing culture is their ability to
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| | maximize success. Purchasing Management
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| coach, mentor and train their buyers on
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| | should focus on maximizing profitable
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| creating profitability, maximizing
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| | growth. We all look at sales first when
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| customer service and building
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| | it comes to growth and profitability.
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| relationship equity with their own sales
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| | Don't overlook the ability and
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| force.The Purchasing Management
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| | responsibility to contribute to the
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| SuperstarFinding the right person to fill
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| | primary reason we are all in the
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| the critically important role of
| |
| | business. Remember, Purchasing Management
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| Purchasing Manager can become quite a
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| | must become the muscles and the tendons
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| challenge. Often times there is a
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| | that maximize profitable growth. Dr. Rick
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| tendency to simply rely on tenure,
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| | Johnson () is the founder of CEO
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| product experience and the compassionate,
| |
| | Strategist LLC. an experienced based firm
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| often misguided feelings of employee
| |
| | specializing in leadership and the
|
| entitlement.The Owner -----"We have grown
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| | creation of competitive advantage in
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| to the point that Purchasing Management
| |
| | wholesale distribution. CEO Strategist
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| needs to become a strategic initiative.
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| | LLC. works in an advisory capacity with
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| Let's promote Old Joe, he's been with us
| |
| | distributor executives in board
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| for twenty two years now and has been
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| | representation, executive coaching, team
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| handling the commodity side of our
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| | coaching and education and training to
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| business for the past fifteen years."The
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| | make the changes necessary to create or
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| VP of Sales ---- "But Joe doesn't have
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| | maintain competitive advantage. You can
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| any formal management training and some
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| | contact them by calling 352-750-0868, or
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| of our sales people think he's a real
| |
| | visit for more information. CEO
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| pain! He's doesn't understand cost
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| | Strategist - experts in Strategic
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| effectiveness and lacks creativity.
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| | Leadership in Wholesale Distribution.
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| Remember the major problem we had with
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| |
|
