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President's Article

"Got Purchasing? "

By Chrys C. Varnes, C.P.M.,
President NAPM-Orange County, Inc.
Affiliated with the Institute of Supply Management

By now we have all heard the "got milk" commercials. You know the guy that just took a big bite of a peanut butter sandwich and then learns there is nothing to wash it down with! I have often thought that it's too bad that ISM can't raise enough money to hire a marketing company to create a "Got Purchasing" campaign. Upon reflection, however, are we really ready to step up to this role? Are we as vital to our organization as milk is to peanut butter?

Many of you heard our dynamic speaker in October who talked about his accomplishments which included developing and negotiating major information technology contracts with the help of one other department…legal.

When asked about the Purchasing Department's role in the process, the speaker expressed an opinion that the Team did not feel that purchasing could contribute so they were not invited to be part of the group.

Those of you that were present will remember that I told him based upon my "split personality" as both and Information Technology (IT) and Purchasing professional, that I took exception to his statement. Purchasing can and should be a major contributor to IT contracts.

However, in subsequent discussions with some of our members, I learned that many purchasing professionals are not comfortable dealing with IT acquisitions. Gaining enough technical knowledge and blending this with purchasing principles to support these IT acquisitions is important since IT represents a significant amount of spend in most organizations. And often we are required to later provide support for these projects after they are implemented.

Then I started thinking about other changes in our profession that require us to have skills and knowledge beyond traditional commodity and equipment acquisitions. For example, with an increasing trend for highly integrated horizontal supply chains, purchasing needs to expand their expertise to include contracting for finished products and a wide variety of services. And we need to be a key player to optimize the entire supply chain within and outside of our organizations.

I remember when several years ago I was first assigned to work in Detroit with the General Motors Purchasing Agent Harold Kutner and his team. I was amazed by the dramatic changes in the automotive industry and the rapidly evolving role of their purchasing staff. Fortunately General Motors had the budget and foresight to provide education and training to help their employees meet the new challenges.

My question to all of you is how can ISM help you to become more knowledgeable? What do you feel you need in the area of education and career development to become a vital, strategic part of your company? Send me an e-mail at chrysvarnes@earthlink.net to share with me your ideas.

Ultimately "Got Purchasing?" should be as basic of a need as milk is to peanut butter!


 

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