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Rants & Ravings

Staff -- Purchasing, 10/20/2005

Diversity stops at the gates

Regarding "The changing face of supplier diversity" (PURCHASING, August 11, 2005; p. 52), does the typical corporate board reflect the same goals as the supplier diversity programs? It appears that in most instances the diversification programs end at the gates of the golf club, with few exceptions.

Andrea L. Agazim Glenview, Ill.

No babysitters

We, as buyers, are not here to babysit the vendors. However, that depends on the industry that you're in. When I was with an automotive soft trim plant at the border, I had the ability to outsource any supplier that could not meet our demands (in a reasonable time) simply because we did not want to shut Ford or GM down for one second. And what's more, we had a vast list of suppliers wanting to do business with us. I must say, to do business with us, they had to be QS certified. I truly enjoyed the dynamics of the business, last minute changes, changes that kept me busy all day long. How I miss those days!

I've been working for a disposable medical products manufacturing company as a raw materials buyer for the last nine years, and since we have to meet so many FDA regulations, I don't have the facility to approve a new vendor without going through the full material/vendor qualification process.

X. Velarde Fort Worth, Texas

Managing the spend

Regarding the Rockwell Collins Medal of Excellence win (PURCHASING, September 1, 2005; p. 26), I have read the Rockwell Collins pieces, and had a question. How many suppliers does the Strategic Sourcing Group manage to support the $700M spend?

Patricia E. Moody Manchester, Mass.

(Editor's note: Rockwell Collins has about 4,000 direct materials suppliers, but the company is likely to reduce that number within the next year. Right now, almost 80% of its nearly $700 million spend is with just 460 suppliers. Among areas rife for supplier reduction: machine metal parts and distribution.)

Streamlining is the benefit

Great article ("Buyers become more selective in online tools", PURCHASING, September 15, 2005; p. 43) and I believe this epitomizes why purchasing organizations will continue to be viewed as transactional "paper pushers". The true benefits to e-purchasing tools such as e-procurement, reverse auctions and e-RFx are more about streamlining the source-to-pay process and creating a database of information for managing knowledge and know-how to enable buyers to make better decisions, and focusing on more strategic initiatives like spend analysis and contract compliance. The relationship management and negotiation steps are the same offline as they are online if the right solutions are in place. It is very disheartening to see the lack of training and education resources being deployed...which probably leads to the negative perception of this technology.

Thank you.

Jeremy Brofford Columbus, Ohio

Long-term contract possibilities

Regarding "Energy Buying for the risk averse" (PURCHASING Chemicals Edition, August 11, 2005; p. 40C4): Can you offer any advice on natural gas? The prices are going up with crude oil and there doesn't seem to be any reason for it. How can we buy into a long term contract at a reasonable cost? Are there buying co-ops available in Western Pennsylvania?

Eck Buratti Pittsburgh, Pa.

(Editor's note: Executive Editor Tom Stundza says most of the co-ops are for electricity. He suggests checking with AGL Resources (www.aglresources.com). It's an Atlanta-based company that bought NUI Corp., the only natural-gas co-op in Pennsylvania.)

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