Purchasing

Great Comments. Very informative article.

It is so refreshing to see that someone truly understands the differences. I''''ve blogged on this same topic. One point that I''''d respectfully disagree with is that certifications are usually globally recognized. While the SPSM is globally recognized and is being pursued in over 50 countries throughout the world and ISM has some international recognition, most purchasing certifications are country-specific. For example, CIPS from the UK offers the MCIPS which is unheard of among the vast majority of purchasing professionals in the USA, Eastern Europe, Asia, South America, and Australia. The Purchasing Management Association of Canada''''s C.P.P. (not to be confused with the American Purchasing Society''''s C.P.P.) is viewed as a Canadian certification in other parts of the world including the USA. Likewise, certifications from the American Production and Inventory Control Society and the American Purchasing Society are generally considered "American" certifications in other countries and, therefore, not tremendously valued in those countries. Notwithstanding that difference of opinion, I think it is wonderful that you are promoting continuing education in this forum. It is really necessary for us all to "push the ball forward" and get C-level and industry-wide respect for the purchasing profession.

Charles, You are right, not all certifications are globally recognized. Some organizations are trying to expand in other countries, however I don't know what success they have had. Some seem to be content to work in their own country. When we go from purchasing to supply chain management, this seems to broaden the scope on membership in some professional organizations. Mary

It sounds really good to get certain initials after a name. but the more expensive process of geting certifications makes the lower paid persons difficult to get improved, which is very popular for my friends who just got university certificates from a 4-year college life, but they have very strong eager to get improved in their fields for a better occupational planning. Do you think there will be a trend that the cost to a certification will be reduced and pupular to open to the lower paid guys?

I do not see a decrease in the cost of certifications. Most organizations I am involved with that are offering new certification programs are increasing the costs. I do believe they are making a special effort to keep the cost down. If you are just getting out of college, look for a company that supports certification and education. Some companies pay for their employees expenses and offer a increase in salary when they become certified. I had to do all of my work by self study as I did not have the money for classes. Also many people offer books at a reduced cost after they pass the program. Inquire with the professional organizations and see what they can offer you.

I had to do all of my work by self study as I did not have the money for classes. It is the true situation of myself. And I do agree with you the idea of resorting to books. And reading your blogs also very encouraging. For my understanding, a lot of companies are never willing to pay for their employees expenses for training, especially for trainings from the intenational recognized organizations. They think the guys will hop away after they got the certifications. and the people got trained by their self cost usually wish a higher salary level than their former company can offer. It is really a contradiction.

I am a believer in education. Certification is a distinction in your field. There are not many companies that offer compensation to their employees for study. Even if you accomplish it on your own, pay for it on your own, somes companies do not value it. It would be good if we could all work for companies that really support training in the purchasing area. Much is spent on sales training, however purchasing usually has a limited budget. We all sacrifice for something we usually want, it could be time or money. You don't know when this accomplishment could make the difference in moving to a better position or possibly changing jobs. It is your benefit.

I agree with Mary - certifications help you earn more money and are usually well worth the investment. For example, a recent survey of over 1,200 purchasing professionals throughout the world has shown that purchasing professionals who have earned the SPSM Certification earn an average of $13,634.46 (US) more per year than those who haven’t. Purchasing Magazine''s salary survey supports similar stats. Multiply that annual premium by the number of years that you have left before retirement and the cost of certification (even the expensive ones) is relatively small. "Lower-paid guys" who do nothing to make themselves more qualified will always remain the "lower-paid guys." Other surveys have found that approximately 2/3 of companies do fund training for their purchasing employees.

Self-study for certifications can be just as effective as paying for expensive prep classes. In fact, I attained my C.P.M. through self study. I did attend one prep class for one of the four modules for the C.P.M. and was incredibly disappointed in the class. Basically, the instructor read from the same study guide I had at home and offered no new discussions or information. It was a waste of time and money (my company's). Many professional organizations such as CAPPO will offer members the study guides and other helpful tools on a loaner basis. Some even offer sample timed tests on CDs. Just ask!

Most professional organizations offer many choices of study. I study better alone. Many of my friends say a group study is the only way to go. Do what works best for you. Set a completion date, this helps you to get focused and meet your goal.

To have a truly globally recognised certification, it is imortant that various Professional bodies (APS, ISM, CIPS) collaborate to recognise certifiactions provided by one another, I am not sure if this type of arrangemnt exist. A body I truly respct and recognised as global is the CILT that is world recognised, I think it is time our different national Procurement / Supply cahin bodies get of their high horses and begin to collaborate in the interest of the profession.

It is my understanding that many of the professional organizations have met in the hopes of some of them joining forces, however it seems that none of them have ever come to any agreement.

I find companies look for competence in people they employ, for example here in this case, purchasing or SCM. One of factors in competence is education (knowledge), Certificate or certification is expected to provide that. Whether it has Global recognition or local value depedends on syllabus and its ability to create value. For example, if a course is on issues of pure local interest like legislation details, it may not be of much relevance except to those who are going to be impacted by it. But SCM course, will be relevant and could have Global impact since it is now a a trend all over the world as a result of Globalisation of trade.

I have found that my C.P.M. certification has value for me and a few fellow professionals. Most other people, including the management of the company that employs me, place no value on it.

I am very active in the Institute for Supply Management and work with a lot of great people in my area. I agree totally, after talking with many members, some companies really promote and acknowledge certifications, others put very little stock on it. The company leadership makes the choice of value in the company.

Purchasing and supply management would be best served if the profession could unite under one certifying body and a single comprehensive certification. It's hard for the public or senior management to get a handle on certification value because of the ongoing proliferation of "supply" related certifications. Rather than pursuing multiple certifications that cover much of the same material I recommend that purchasing and supply management professionals obtain a much broader perspective on business through either advanced education or the Certified Business Manager (CBM) program offered by the Association of Professionals in Business Management. The CBM certification program is based on an MBA curriculum and was designed to provide CPAs, C.P.M.s, CPIMs, and any other specialty certification holders, the advanced comprehensive business education they really need to succeed in their specialty or in general management.

My company has recently transitioned to SAP and in the process, Purchasing has taken on the role of AP and Logistics. All price, qty, ERS, EFT, consignment and freight issues are coming back to purchasing otherwise there is a blocked invoice and a screaming supplier. With the current economic situation, changing markets and prices and freight costs, it's a never ending battle to keep up. I have to put in an estimated freight cost for every line item of a contract whether it's one line or 75 lines and if that freight goes over by a penny, I have to approve it. If I have a set freight term on the contract and the plant decides to override that for whatever reason, I also have to approve that because it's different than the terms of the contract. In the case of dairy where pricing changes upon shipment, order date, weekly or monthly, I also have to update the contracts and then go in and find any releases against that contract (we have over 20 plants) and update those releases. When do I have time to manage the categories I buy or at least manage them well? Especially in this economic state we're in? Does anyone have similar situations with SAP or is it how our SAP team designed the layout? I'd love to know because this is taking a toll on everyone in the Purchasing Department.

It seems to me that daily more and more is added in to the procurement area. It is no longer buying, expediting and dealing with our suppliers, but yet I do not see added employees or training for current employees.