Overseas experience key for Hallmark's Krouse

Staff -- Purchasing, 11/3/2005

Most purchasing executives have a China strategy today that focuses on finding suppliers and leveraging low-cost materials. But how many purchasing execs have gone so far as to consider what kind of greeting cards would go over big in China?

Meet Daniel Krouse, operations vice president for global procurement at Hallmark Cards. A company veteran, Krouse joined Hallmark in 1981 and has held a variety of positions in the company in areas such as materials management, product and materials purchasing, new product development, and marketing. His experience in developing the business in Asia goes back almost as far. He first moved to Hong Kong in 1983 as manager of Hallmark's operations in support of China trade development at the time and led Hallmark's development in the Pacific Rim. He then spent some time in U.S. marketing before returning to Asia as managing director of Asia Pacific in 1991.

Krouse has been in his current position since 2000 and oversees procurement of all product, merchandising, materials, supplies, service, equipment and related operations for Hallmark. Outside of the company, he serves on the board of trustees for the CAPS: Center for Strategic Supply Research, as well as the A.T. Kearney Center for Strategic Supply Leadership at the Institute for Supply Management.

And, of course, Asia is still among his priorities. Krouse has lobbied Washington on China's trade status. "I also have the responsibility for all of our Asia activities and agents in support of product development and sourcing," he says. "In addition, I lead global procurement efforts at a corporate level, including all domestic and foreign subsidiaries."

What was your first job in purchasing/supply chain?

I started as a contract manufacturing buyer working with Hallmark's overseas operations.

How do you see your purchasing decisions improving Hallmark's overall business?

As our internal and subsidiary business relationships solidify more and more, the impact we have as a division improves. We are well ahead of our savings goals, a direct result of spend access, compliance, and a seat at the table for procurement.

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

The ability to influence company decisions at the board room level. [Krouse was made a corporate officer of Hallmark in 2002.] It's not easy to get there, but it's fundamental to driving shareholder value.

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

There are a number of technological breakthroughs that have impacted purchasing professionals, such as e-procurement systems or data warehousing. But, the continuing evolution of online competitive bidding tools to administer RFXs and reverse auctions has altered the way sourcing professionals do their jobs. It has also had an impact on the suppliers that procurement interacts with—often positively as they get to assess their standing in the marketplace, but sometimes negatively as they are forced to compete in a less personal manner.

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

My group has become more involved over the years with our internal business partners who design and develop Hallmark products. Hallmark is always open to new and innovative ways to expedite product to market in the most cost effective way without sacrificing quality. So, yes, we are called in to collaborate in design and development decisions on a regular basis. Influencing our business partners through our knowledge management allows us to more efficiently facilitate the development process within the supply chain, which has become a more critical aspect of this process.

How important is supplier diversity to your job? If important, how do you ensure supplier diversity?

As vice president of global procurement, I think our supplier diversity program is very important. It is my job is to ensure a continued focus on, and improvement in, our relationships with minority- and women-owned businesses. Senior management's commitment to supplier diversity is imperative in our business. Policies and processes support the program, and it's an integral part of our business planning and reporting. Lastly, we recognize and reward exemplary behaviors and successes.

More customers are asking for diverse products in their product selection and mix. We've seen real growth by supporting a diverse supplier base that offers innovative, cost effective and value-added quality products and services.