Introduction to Purchasing Skills for Career Success

Description
Purchasing refers to a business or organization attempting to acquiring goods or services to accomplish the goals of its enterprise. Though there are several organizations that attempt to set standards in the purchasing process, processes can vary greatly between organizations.

YOUR CAREER IN PURCHASING PURCHASING SKILLS FOR CAREER SUCCESS
NAPM UTAH CHAPTER HERB SHIELDS * HCS CONSULTING MARCH 9, 2006

Is Purchasing in our genes? Probably not Does 21st Century purchasing require new skills? Absolutely!
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TODAY’S PURCHASING IS DIFFERENT
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20TH CENTURY PURCHASING FUNDAMENTAL SKILLS
Basics ? Ethics
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Globalization Commoditization E-Business

Differentiators ? Negotiation
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Analytics Communication

Supplier relationships Cost Mgmt.

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ACQUIRING PURCHASING SKILLS
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THE HISTORICAL CONTEXT
H. B. Twyford, Otis Elevator, 1915 “A purchasing staff which is entirely unsympathetic with the …needs of the users of the material will fail to grasp one of the most essential things… They will be dealing with papers and accounts instead of men and things.”

Education On the job training Learning from suppliers Personal/professional motivation
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60’s/70’s
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80’s/90’s
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Adversarial relationships Traveling requisitions MRP USA focus

Materials management MRPII Off-shore sourcing NAPM
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NAPA
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90’s/Today
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PITNEY BOWES
Laura Taylor, VP, Global Procurement Strategy and Operations “You can’t just be a commodity expert. Project management is a key skill.” “Strength in basic business analysis…someone who has financial acumen and business acumen.”

Supplier partnerships Global sourcing E - Purchasing CSCMP and ISM
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JOB DESCRIPTION
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CUMMINS ENGINE
Ignacio Garcia, VP Global Purchasing and Manufacturing Support “We need people to have more business savvy, an MBA is a requirement. Decisions are being made based on, not just on traditional supply chain concerns, but …what kind of business alliance we need.”

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Evaluate supplier capabilities and establish sources for new technologies and in new markets as business requirements dictate. Direct the development and negotiation of complex agreements with suppliers encompassing key program specifications and functional objectives.

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21st CENTURY SUPPLY MANAGEMENT
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20TH CENTURY PURCHASING FUNDAMENTAL SKILLS
Basics ? Ethics
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Continuous improvement in cycle time, cost, quality, and delivery performance Rapid product and development changes Increased expectations for purchasing and suppliers from management Growing reliance on suppliers as part of your process

Differentiators ? Negotiation
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Analytics Communication

Supplier relationships Cost Mgmt.

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21st CENTURY SKILLS
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References
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Strategic focus Ability to utilize a global business model Project management and cross functional team leadership capability Alliance-building capability E-business competency
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World Trade magazine, December, 2005 World Trade magazine, January, 2006 Purchasing & Supply Management, Monczka, Trent, Handfield World Class Supply Management, Burt, Dobler, Starling

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