Purchasing plays major role
By Staff -- Purchasing, 3/12/1998
Once the domain of engineering or manufacturing departments, purchasing is increasingly becoming involved in the purchase of MRO or chemical process equipment. In fact, 70% of buyers say purchasing is part of an equipment buying team at their company.For many companies, purchasing has far more input and control over the equipment buy than it did even five years ago. Not only is purchasing getting involved earlier in the specification process, but buyers also are helping to select suppliers. Purchasing departments in companies that buy large volumes of commodity-type equipment increasingly are employing buyers with engineering backgrounds.
Buyers expect the buying-team approach to carry them further into the equipment selection process. "As engineering and end users are shown they can rely more on purchasing to make the best buy possible, we will continue to become more involved," says one buyer in the South.
For users and suppliers of chemical processing equipment alike, the growing involvement by purchasing in the chemical process equipment buy is good news. While technical specifications will likely remain under the purview of engineering, purchasing can use its abilities to improve communication with suppliers, reduce costs, and help select better suppliers.
Buyers are most involved in commodity equipment purchases. Pumps are the top buy, according to a survey by Purchasing, with 68% of respondents identifying a variety of pumps they oversee. Other equipment that large numbers of buyers have key responsibilities for include valves and filters, both at 66%. Sixty percent say they buy measurement or sensing equipment, and 58% buy mixers. The more specialized the equipment, the less likely buyers are involved in the process. Only 34% buy heat-exchangers, and 16% buy evaporators.
For many buyers, overseeing equipment purchases is just part of their overall responsibilities. According to the survey, 90% of equipment buyers also purchase chemicals. Seventy-seven percent also buy bulk packaging.
Equipment buyers put a premium on supplier service and product quality. According to buyers, the most important factor when selecting an equipment supplier is product quality. Other top concerns include a supplier's technical know-how and customer service. Price comes in fourth. Price concerns rank lower than might be expected, not because buyers are unconcerned with a good price, but because they need good service more. Concerns such as local stocking, delivery issues, and a supplier's national capability rank lowest on the list.
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