Training opportunities for buyers are haphazard

Tom Stundza -- Purchasing, 3/3/2005

It has long been assumed that purchasing education and training programs are commonplace in manufacturing companies as purchasing and supply professionals struggle to meet the challenges and expectations of the current dynamic—and erratic—economic environment. However, a new PURCHASING magazine online survey finds that just 41% of the respondents' companies have formal on-the-job training or career development programs for purchasing professionals. This matches a 2004 report by CAPS Research, which pointed out that training has fallen far short of the forecasted goal of 75% for 2000.

The online PURCHASING survey found that the majority of buyers (69%) spend no more than 20 hours annually on professional training. While some firms offer up to 40 hours of training, few buyers take advantage of the full programs. Interestingly enough, these results also mesh with the CAPS Research report, which concluded: "There needs to be a greater emphasis on structuring and delivering purchasing training in the future."

Of those firms that do require training, the number-one topic is "how to buy better," followed by "how to manage suppliers" and "how to determine total cost of ownership." Other popular education topics are contract negotiations, inventory reduction, materials management, risk management and performance measurement. Surprisingly, neither quality control nor spend analysis are training modules now in play. However, buyers did suggest new courses on developing strategic relationship management, strategic cost management programs, supplier selection and systems that allow for better collaboration with suppliers and internal customers.

While more business is being conducted electronically with suppliers, it isn't true for training, at least that is what the results of this poll indicate. None of the buyers surveyed report Internet technologies as an education module and only 15% of the respondents have training sessions online either as formal training classes or webcasts. Most of the training (47%) is handled in seminars outside the workplace, although 38% attend in-house classes.

There is a worry among top-level purchasing professionals that unless business organizations get serious about training within the purchasing and supply management function, the profession will lose top spots in the future to individuals from other corporate functions. Yet, the PURCHASING survey shows that 60% of the training is being done by fellow employees and teaching consultants, with only 40% being handled by professionals endorsed by or from supply management groups.