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