Purchasing careers get redefined
By Agatha Ciancarelli -- Purchasing, 12/10/1998 2:00:00 AM
Finally, it's starting to happen. According to a recent survey conducted by Purchasing Magazine, 90% of purchasing executives believe that there has been a change in the general attitude toward procurement.
Purchasing's significance to a company can be huge when it is measured in terms of the potential savings it brings to the company. Purchasing is evolving from a tactical, transaction-based process into a strategic function that interacts with all aspects of a company's business. "Purchasing is no longer viewed as the place to hide relatives," says Franz Hoffer, materials manager with Akso Nobel. "It has proven to reduce real costs and manage the supply chain."
"Today [purchasing] is seen as the profit center with direct interaction to all disciplines," agrees Michael Holzhaus, vice president of steel divisions with Alamo Iron Works. Purchasing is becoming more sophisticated; subsequently, it demands new qualities from job candidates and is attracting people with broader and higher-level skill sets than in the past. As purchasing's role as a whole takes on new dimensions, the "classic" steps to advancing in the profession are changing dramatically.
As responsibilities become more integrated and cross-functional in purchasing, qualifications are shifting. Those attracted to the profession have inevitably been affected by the recognition that purchasing has begun to receive as a major influence. Their responsibilities have broadened and demands have increased. As a result, purchasers are focusing on the following areas of career development:
* Higher levels of education.
* Developing new skill sets.
* Broadening knowledge of supply management.
* Better business understanding.
Indeed, eighty-six percent of the purchasing executives surveyed believe that those becoming involved in purchasing today have to meet different criteria, education being one. The demand for higher educational standards in the profession also is an indicator of purchasing's more distinguished role. "There are more demands for knowledge in purchasing," says Elayne Garver, director of purchasing, Edron Fixture Corp.
Most agree a Bachelor's degree is the minimum requirement for working in purchasing; a Master of Business Administration (MBA) degree is preferred. "Those involved in purchasing today have a more formal education. In the 'old days' purchasing people came from the bottom up," says Mitch Willis, director of purchasing and materials with the Steak-umm Company. Mark Robertson, director of procurement and material management with the Nevada Power Co., agrees: "There are many more people with degrees and advanced degrees, including law, engineering, and business management." Says Richard Sprungle, vice president of operations with Fasteners for Retail, "Those involved in purchasing today are more professional and educated rather than company-taught."
However, it is not only a question of higher levels of formal education that distinguishes the purchasing professional today, but also diverse educational backgrounds. Degrees and applications in the fields of engineering, technology, business, and finance have become more relevant to the purchasing profession and are therefore highly sought after.
Purchasing professionals also can gain preparation and advancement through university courses in purchasing management, supply chain management, logistics, and procurement. Certifications such as CPM, apics, cpim, and other continuing-education courses and seminars are also recommended to further a career in purchasing. In fact, 69% of the purchasing executives surveyed agree that certifications and continuing-education courses are necessary in advancing a career. Says Bob Steder, purchasing department of FFC, "CPM and various seminars contribute to the overall knowledge of the purchasing function. They help to keep individuals current with the new disciplines and developments." And as you can read in the results of our annual salary survey, which starts on page 42, certified purchasing professionals earn higher salaries than non-certified purchasers.
Many companies have stepped up their training efforts. Nearly a quarter of the companies surveyed offer their own purchasing training, either through local universities, company seminars, and/or on-the-job training.
Increased skills needed
The skills purchasing professionals need have also evolved to fit the changing activities required in the profession. "Things are changing so quickly, not just technology but the way companies are doing business, that it is essential to stay on the cutting edge to be of value," says Hoffer. With technology continuing to grow at an increasingly rapid rate, technical ability is almost essential for purchasing pros in certain industries.
Skills not taught in a classroom environment also help in advancement. Purchasing has become instrumental in developing supplier relationships; therefore communication skills have taken a step up in terms of criteria. "Good negotiation and people skills and a tenacious personality are necessary in the industry. Spreadsheet and forecast abilities have also increased," says Andrew Soltis, director of purchasing, Stylecrest. Bill Pflum, director of purchasing at Stant Manufacturing Inc., agrees: "Common sense, the ability to get along with people and handle more than one thing at once are also important to getting the job done."
Experience as an asset
Experience in buying certain commodities and managing certain supply bases also have become more sought after. Bradley Kraay, a buyer with Electromagnetic Sciences, says, "Industry in general wants a lot more commodity expertise." Extensive product knowledge is advantageous for different reasons. One chemical buyer says, "Industry-specific knowledge enables cuts in costs." Sherwin Johnson, purchasing manager, Safetran Systems also agrees: "Involvement with a product puts you in a position to buy a better and lower-priced product."
A wider range of experience in fields other than purchasing is becoming an asset as purchasing's role continues to become more integrated with other disciplines. "Because most activities in purchasing require teaming in other functions, broader experience allows you to accomplish this more easily and gives you credibility," says Bruce Hartley, director of purchasing with Pasteur Merieux. Says Lou Stafford, materials supervisor at CTS, "You need to have an understanding of most facets of the business because cross-functional teaming involves working together on new products and cost-reduction programs." The inside perspective of the business offers a better understanding of how the different departments interact with each other.
In fact, "Professionals within the same organization, although from different areas (accounting, administration, engineering, etc.), are attracted to purchasing," says Kay Mann, a buyer at Atlantic Design. Soltis reiterates this saying, "There is more sales and marketing experience in the field today." This knowledge of different functions, all in one department, adds tremendous value to the purchasing profession. "The broader the experience of the purchaser, the less likely decisions will be made that adversely affect other functions of the organization," says Steder. A broader mind will be better suited to meet the new variety of purchasing responsibilities.
A recent survey conducted by Purchasing Magazine reported 72% of purchasing executives agreed that it is necessary to branch out into other disciplines in order to rise in the purchasing field. Jack Miraval, director of purchasing with Unimin Corporation, agrees, "It is beneficial to have a purchasing department with diverse backgrounds. Our department has people from finance, operations, and engineering that can help one another and attack problems from different angles."
Purchasing pros have become key players in corporate business planning. Says Mark Hephner, director of purchasing with DeBartolo Properties Management, "Purchasing is being included in key corporate planning and budgeting." These new functions make a business background critical. Says Miraval, "Anyone can purchase. But to purchase an item that reduces early operating expenses and adds value requires a broad understanding of the business."
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