George J. Biltz may be a rookie to the purchasing field, but he brings a fresh perspective and wide array of manufacturing and business experience to his first role in purchasing. Named vice president of purchasing and business vice president at Dow Ventures in March 2005, Biltz is responsible for more than $10 billion of purchases annually and leads global purchasing at Dow Ventures, a business unit within Dow Chemical that focuses on pharmaceutical and biopharmaceutical services, electronics, health care, and emerging energy. His responsibilities include negotiating prices, fostering positive supplier relationships and implementing competitive procurement strategies.

But unlike the typical purchasing VP that comes up through a procurement organization, Biltz brings an external, market-oriented perspective via his commercial background and ventures experience. Since 1978, Biltz has been with Dow Chemical for 27 years, in various roles, but was a client of purchasing vs. a leader within purchasing. He holds a B.A. in chemical engineering from the University of Detroit and an M.B.A from Central Michigan University.

Before joining Dow Ventures, Biltz was CEO of the ANGUS Chemical division of Dow, which was acquired in 1999. He relocated to Horgen, Switzerland in 2001 to take a new role as vice president of custom and fine finishing where he helped create the Dowpharma division and led the integration of the Ascot acquisition into Dow.

Are the requirements for a purchasing professional today the same as they were five years ago?

Today's purchasing professional needs to be first and foremost a businessperson. He or she needs to thoroughly understand the backdrop of market trends, including pricing, emerging technology and the competitive landscape. They must constantly analyze these inputs to partner strategically with their business clients, to bring them options and create efficient and effective purchasing strategies. I believe the level of performance required has elevated.

What would you classify as your biggest professional achievement to date?

If I had to choose one, it might be the integration of ANGUS chemical following its acquisition by Dow. As CEO, I led the integration at a critical time when all elements must come together—most importantly the people and culture pieces. Getting the culture right is essential to success, so it was perhaps the most valuable of my experiences.

How have you seen purchasing change during your tenure in this position? Has it served to complicate or simplify your job?

The number-one market driver in the chemical industry today is the volatile and high-energy commodity prices. These trends put significant pressure on the competitiveness of the chemical industry globally. Purchasing can play a role to help manage these costs by forging strategic relationships with internal clients and external suppliers. The key is to focus on both efficiency and effectiveness simultaneously.

Are you called in to consult with product design and development teams more today than in the past?

This is exactly the kind of role purchasing professionals must aspire to. We've just come through a period where purchasing has been revolutionized by the advent of e-commerce. Today, another revolution is at hand as a result of global macroeconomic trends. The earlier we are involved in any change management or new product or process change, the better we can ensure the integration of effectiveness and efficiency.

What is the most important trend you see in purchasing today?

The massive shift in manufacturing in China has led several procurement organizations to seek new procurement opportunities in this region. The challenge is multifaceted—from learning to successfully negotiate in a new culture to reinventing the supply chain from the ground up. Mastering the art of global procurement is essential to long-term capabilities and growth.

What advice would you give to someone just starting out in this industry?

Elevate. Learn all you can about your client's strategies and study the marketplace in which you purchase. Become an expert in the trends shaping that marketplace, then partner with your client. Present analysis, share trends, create options, mutually agree on a course of action, and then execute efficiently. Never shy away from accountability. Finally, recognize those who enable success.