The new reality in design
By Kevin R Fitzgerald -- Purchasing, 3/11/1999
In the story that begins on page 50, you can read how some purchasing professionals have become so deeply involved in design work that their basic job responsibilities have very little resemblance to any traditional purchasing job.For example, motorcycle manufacturer Harley-Davidson reshaped purchasing a couple of years ago to enhance product design. "Purchasing engineers" now have responsibility for all aspects of a new product's design. This is a sea change from traditional design approaches, where engineers designed parts and components into a product, and purchasing then sought sources of supply. During design, little if any thought was given to cost, manufacturability, secure source of supply, and other factors that can make or break a design when it receives a harsh reality check in the marketplace.
This new design paradigm is changing dramatically the roles of both purchasing pros and suppliers. For purchasers, who must be more technically astute than in the past, one responsibility is to look deeply into the technological offerings of suppliers in an effort to identify and apply new technologies to new products.
Terry Carlson, Maytag's VP of procurement and member of Purchasing's Editorial Advisory Board, points out that one of purchasing's new responsibilities at Maytag is to seek out and exploit supplier value. He calls purchasing the "innovation search arm" of the business, and describes part of his group's new responsibilities as finding suppliers "that can connect their products and technologies with consumer needs."
For their part, suppliers must be much more proactive in the design process. It's no longer acceptable for them to sit back passively and wait for marching orders from customers. Instead, they must take the initiative, pulling customers along with them as they continually develop new technology and new applications for existing technology.
Aircraft engine manufacturer Pratt & Whitney now seeks a different type of supplier. As Al Mulvey, VP of purchasing, points out, there's a "new reality" where suppliers must "push back and tell the customer what he needs," not simply rely on what the customer wants.
Outsourcing is driving purchasing's fast rise in the design kingdom. Where once Harley-Davidson, Maytag, and Pratt & Whitney basically did everything involved with their products, more and more work has been outsourced to key suppliers. It only follows that this migration of design to suppliers would force more responsibility to the function that manages the supply chain: purchasing. Expect purchasing's involvement in design to become widespread in coming years.
Talkback
Related Content
Related Content
Sponsored Links
View All Blogs
Now Playing:
