Www.propurchaser.com Join the PURCHASING KNOWLEDGE REVOLUTION Prepared for CAM Canada November 22,...

www.propurchaser.com

Join the Join the

PURCHASING PURCHASING KNOWLEDGEKNOWLEDGE

REVOLUTIONREVOLUTION

Prepared for CAM Canada November 22, 2004


Purchasing is a very busy job

shorter planning cycles (AKA flexible manufacturing)

smallerinventories(less safety stock)

unreliable information(late, missing,incomplete)

fewer support people


This is the real Job

Increase the value received for the dollars we spend


No one can be No one can be effective at their jobeffective at their job

if they’re always fighting fires.if they’re always fighting fires.

NOT EVEN FIREMEN !


Urgent Work vs Non-Urgent WorkUrgent Work vs Non-Urgent Work

Non-urgent work happens when:

• We improve our marketplace & technical knowledge to increase negotiating effectiveness

• We seek out value-adding alternatives: new suppliers or materials

• We team up with Engineering, R&D, Production, & Suppliers to optimize materials, specifications & processes

Urgent work happens when:

• Materials & services are late, short, defective, or missing

• Surprise shortages occur due to unexpected high usage

• Surprise shortages occur due to inventory reporting errors

• Suppliers’ declare force majeur


What’s the major difference?What’s the major difference? Non-urgent work adds value!

It’s what our customers, shareholders, senior managers, stakeholders, and WE really want us to do.

‘Demonstrating profound value to the bottom-line’ means finding time for non-urgent work.


The Joy of Escaping from the

Everything is Urgent Zone

1. Carve out time.

2. Drive down purchase costs.


Escaping from theEVERYTHING IS URGENT Zone

Manage one of the

major time traps -

Price Hassles


How to spend less timehaggling & hassling

Track suppliers’ input costsTrack suppliers’ input costs

- then tie what you pay - then tie what you pay to their costs.to their costs.


LUMBER

Pallets

LINERBOARD

Corrugated Packaging

COLD ROLLED

STEEL

Stampings, Cut Sheets

As prices for commodities go up & down,

Presented by: Rod Sherkin

so too do your suppliers’ costs to produce the goods & services you buy


The best supplierssee advantage

in linking prices to costs

They actually prefer to compete in a transparent arena


Suppose you’ve been able to make a deal…

How do you maintain it?

Where do you find the time?


Purchasers already need tokeep track of so many things

Packaging

Transportation

Components

Ingredients

MRO Services

Utilities


The task of keeping tabs onThe task of keeping tabs onsuppliers’ inputs suppliers’ inputs

is daunting to say the leastis daunting to say the least


Enter the Internet



For the first time in history

INFORMATION

can seek out

PEOPLE!


Even better,

you can filter information

to meet your

personal requirements

A perfect tool for busy people


This is nothing short of aPurchasing Knowledge

Revolution


13%


-12%


• Increases negotiating leverage

• Widens span of price control

• Delivers cost transparency

There are more good reasons to use this approach…

Advantages of using the InternetAdvantages of using the Internetto track your suppliers’ inputsto track your suppliers’ inputs


Five More Good Reasonsfor tracking suppliers’ inputs

1.1. Attract low-cost producersAttract low-cost producers

2.2. Strengthen the supply-chainStrengthen the supply-chain

3.3. Reduce suspicion and acrimonyReduce suspicion and acrimony

4.4. Benefit sellers as well as PurchasersBenefit sellers as well as Purchasers

5.5. Enable automatic price reductionsEnable automatic price reductions

But best of allBut best of all

It frees up Purchasers’

precious time.


What can Purchasers do What can Purchasers do with their new-found time?with their new-found time?


Devote more time to value-adding work…

Improving marketplace & technical knowledge to increase negotiating effectiveness

Seeking out value-adding alternatives: new suppliers or materials

Teaming up with Engineering, R&D, Production, & Suppliers to optimize materials, specifications & processes


What Larry BossidyWhat Larry Bossidyof Allied Signalof Allied Signal

says about Purchasing…says about Purchasing…

This thoroughfare to savings This thoroughfare to savings is broad and fast -- is broad and fast -- yet so unsexy that yet so unsexy that

even seasoned managers pass it by.even seasoned managers pass it by.


What William Marx,What William Marx,Executive VP of Executive VP of

AT&T’s Telephone Products,AT&T’s Telephone Products,says...says...

Purchasing is by far thePurchasing is by far thelargest single functionlargest single function

at AT&T.at AT&T.Nothing we do Nothing we do

is more important.is more important.


Opportunity KnocksOpportunity Knocks

OPEN THE DOOR!

The Internet is powering a Knowledge Revolution which

Purchasers (busy as they are) can exploit to drive down costs, and make a profound difference to the bottom-line.


To Obtain Your Free MembershipTo Obtain Your Free Membership

www.propurchaser.com/CAM/

Click ‘Free Trial’; complete the form (90 seconds).

Www.propurchaser.com Join the PURCHASING KNOWLEDGE REVOLUTION Prepared for CAM Canada November 22,...

Documents

Transcript of Www.propurchaser.com Join the PURCHASING KNOWLEDGE REVOLUTION Prepared for CAM Canada November 22,...