PPG veteran puts purchasing on the map

Jim Polak

Karen Prema -- Purchasing, 10/6/2005

Jim Polak, director of general purchasing is a 31-year veteran at PPG Industries, a global supplier of coatings, glass, fiberglass and chemicals. Polak received a degree in electrical engineering technology from Purdue University in 1972 and an M.B.A. from University of Illinois in 1974. He joined PPG that same year as a production engineer at the Carlisle, Pa. float-glass plant.

Since then, Polak has held positions in a variety of other departments throughout PPG, which he says has benefited him in his purchasing and supply work. He held positions in customer service, sales, marketing and development, plant manager, production and distribution. In 2000, Polak landed his most recent position as director of general purchasing, with responsibility for $1.3 billion spend.

In 2004, Polak's work at PPG earned him PURCHASING magazine's Spend Analysis Star distinction.

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

In purchasing, it would be our successful spend-analysis project. PPG received national recognition for what we have achieved in leveraging spend-analysis information. In my overall career, I helped turn around one of our worst facilities into one of PPG's best facilities.

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

I've seen more companies shifting to a truly centralized purchasing model, and I've seen an increasing reliance on information and technology. Both developments have served to simplify my job.

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

We [the purchasing team] are increasingly the first function called in on both the direct and indirect purchasing front. Raw materials and indirect materials must be designed and developed with an eye toward cost and competitiveness vs. ending up with a high-cost sole source.

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

It's purchasing organizations turning toward where they should have started their journey: spend analysis. Many companies jumped into e-procurement and/or e-sourcing and subsequently hit a wall of sorts. They became limited by a lack of visibility into their spend and by the amount of spend they were able to push through these tools. More companies are realizing that having visibility into a high percentage of their spend, allows their purchasing professionals to better utilize other purchasing tools and maximize the benefit to their company.

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

No. Five years ago this industry had a greater percentage of people who had been in purchasing for their entire career. Today, we look for people with broader experience, which helps them understand business issues and communicate with our internal business-unit customers.

How are your purchasing decisions improving your company's overall business?

Every dollar we save goes directly to the bottom line. In addition to savings, we continue to look for ways to make it easier for our requisitioners to quickly obtain the goods and services that they require to do their job. This results in their being able to spend more time in their primary areas of accountability, becoming more productive.

Do you see purchasing professionals climbing higher in the company's executive organization today than they have in the past? If so, why do you think that is?

PPG has had a track record of utilizing purchasing as a training role for executives. Our past CEO, our current CEO, and many of our business unit leaders spent time in purchasing during their careers. It provides excellent training to gain a broader perspective on costs, the supply chain and dealing with a wide range of suppliers.

What has been the biggest technological breakthrough for purchasing professionals in the past five years?

E-sourcing and/or reverse auction technology. Look at the amount of cost that was taken out of the supply chain almost overnight. The former FreeMarkets built an entire enterprise out of this technology and the accompanying sourcing services.

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

Network every chance you get. It's amazing how much you can learn from the experiences of others in this industry. Be adaptable, embrace new technology and be a change agent for your company.