Purchasing powers push to online processes at Polaris
By Susan Avery -- Purchasing, 9/7/2006 2:00:00 AM
At Polaris Industries, purchasing now has online access to data in the company's cost reduction program called STAR (Strategies Toward Annual Reduction).
To be sure, both purchasing and engineering have been using STAR which contains cost improvement ideas submitted by suppliers for some time. The data had been stored in an Access database. One way purchasing uses the data is to measure supplier performance. In addition to cost, purchasing also evaluates performance using quality, delivery and business practice metrics. The evaluation is based on a 4.0 grade and is updated monthly.
STAR is available online to internal users who simply click on a link on the purchasing home page, Procurement Net. The site has access to e-commerce, planning supplement (order release), part qualification request, request for quotation (RFQ) and other purchasing systems. Suppliers have access through a password-protected site on the Internet, www.polarissuppliers.com.
“These online systems are invaluable to running an efficient operation,” says Dave Dickirson, director of power train purchasing. He and his team of purchasing professionals source engines and engine parts for the ATVs, snowmobiles and Victory motorcycles manufactured by the Medina, Minn.-based Polaris. Purchasing professionals, under the leadership of Rich Kobes, senior director of purchasing, work in four facilities including a new $35 million product development center in Wyoming, Minn. Polaris sources approximately $1 billion annually.
Purchasing is actively involved in automating its systems. They first started using the Internet to do business mainly as a communication tool in 1999. They posted business practices and supplier policies. Since then, they've added a system every year or so, including integrating a contract management system. Purchasing had been using these systems manually prior to automation.
“With STAR in an Access database, we couldn't auto-populate data or ensure data integrity,” says Jodi Vetsch, purchasing systems project lead. Vetsch and Tina Jensen, purchasing analyst, work with IS to automate systems and provide technical support internally and to suppliers.
“Having STAR online ensures data accuracy which equates to more reliable reporting and helps purchasing make good business decisions,” says Vetsch. “Suppliers can view the process online as their suggestions progress toward implementation.”
Dickirson regularly uses the site, which lists commodity teams including casting/machining, drive-train, engines, and plastics/composites. When he clicks on a category, a list of preferred suppliers appears on his screen. Clicking on a supplier listed provides a company profile and performance evaluation.
As manager of Asia Pacific sourcing, Tony Wixo unearths opportunities for cost reduction in China. Like Dickirson, he uses the site to access supplier evaluations. He uses the RFQ system to review past history. “It frees up our time for more strategic activities,” says Wixo.
How they buy:
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Purchasing tracks costs through an online rating system
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Use of online tools frees time for more strategic activities
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