Congratulations to John Paterson, Supply Chain Manager of the Year
By Paul Teague, Editor in Chief -- Purchasing, 10/16/2008 6:00:00 AM
In a world where "globalization" is the word that everyone uses to describe the transformation of business, IBM's John Paterson is the ultimate international man. He has held management positions on three continents—all with the same company.
In a business world that increasingly requires broad knowledge as well as specific experience, his resume represents an almost ideal background. A generalist with some technical training, he has experience in plant management, materials management, engineering and finance, as well as an in-depth grounding in purchasing and supply chain management.
In a world where businesses are only beginning to recognize the importance of a sense of corporate social responsibility, he is among the pioneers in Green business practices and diversity.
And in a world where economic conditions and corporate expectations daily reinforce the importance of purchasing to a company's financial performance, he leads efforts to expand the portfolio of the function at his company.
During his nearly 40-year career at IBM, Paterson has been at the forefront of virtually every major effort to transform purchasing from a back-office function to a true profession that brings value to businesses far beyond mere supplier price reductions.
Everyone recognizes the importance and potential of sourcing in low-cost countries. Paterson went one step further and relocated his procurement headquarters to China. The reasons: to be closer to suppliers in an area where IBM's business was growing rapidly, to further develop the supply base in that area and to improve the skill sets on his own purchasing and supply chain staff.
That move was in keeping with a philosophy Paterson has had for many years, one that's not surprising given his travels: "It's really critical in a globalized business world to understand and appreciate the cultural differences in countries where you do business as well as the business climate in those countries," he has said.
Paterson also led efforts at IBM to make purchasing a profit enabler in addition to a center of expertise for strategic sourcing and other aspects of purchasing management. Like a few others in the field—Tony Nieves of Hilton Hotels and John MacLean of American Airlines, for example—he has turned the traditional concept of purchasing on its head. About 50 companies outsource their purchasing activities to IBM, and Paterson's team uses its skills and muscle to manage entire categories of spend for those companies. The activity adds another $12 billion of purchases that he and his team manage.
For all these reasons and more, we are delighted to recognize John Paterson's efforts and to honor him as Purchasing's Supply Chain Manager of the Year.
Other professionals you should know
Also in this issue, you'll find profiles of other professionals you should get to know. Some of them are new faces in purchasing. Others are superstars in the world of commodities buying. In previous issues of the magazine, we have highlighted superstars in the purchase of MRO materials, products and services.
We profile these professionals to recognize their efforts, and to help you build your own network of colleagues you can share ideas and best practices with. Any one of them could have an answer to a supply chain problem you currently are facing. They've probably faced that problem before and may have ideas to help.
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