The door is open
Paul Teague, Editor-in-Chief -- Purchasing, 7/14/2005 2:00:00 AM
IBM has just confirmed what many readers of this magazine have learned through their own experience: The door to the executive board rooms in companies of all kinds is increasingly open to procurement professionals.
In a report on their recent chief-procurement-officer survey, Big Blue says that CEOs and Boards of Directors in companies around the world "are counting on procurement initiatives to keep their businesses favorably positioned in today's intensely competitive marketplace."
No wonder. It has become increasingly obvious that procurement is at the heart of the supply chain and, as such, has a direct impact on corporate performance. In part, that's because of the leading role procurement plays in supplier management. As IBM says in its report, suppliers are more important to corporations than ever. It's procurement's job to maximize their value and minimize their risk. No one else can do that job.
So, how to focus your efforts in the new and expanded world of purchasing? Among the most important steps are these, says IBM: First, shed the thought that getting the lowest price is the largest measure of success. Look at the full potential of suppliers for adding value. Second, concentrate on relationships with internal customers. Help them take full advantage of the supply-side value purchasing can bring.
Gene Hagedorn is one procurement professional who does it right. As vice president of materials at Baldor Electric, he directs all purchasing for the company's motors division. He is a strong believer in bringing suppliers into product-development efforts. For example, he worked with the company's information services department to develop a special website for suppliers that gives them access to prints, specs, inventory and other items. "The more information you give suppliers, the better job they do for you," he says.
Your Turn
The more information you give us, the better job we can do too. Starting in this issue, you'll see this Readers' Rant icon in several stories. It directs you to www.purchasing.com, where we invite you to comment on the stories and suggest additional information other readers should know. Give us your feedback. We'll use it to ensure that PURCHASING continues to be the most useful strategic and tactical tool you have.
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