Common Sense Purchasing: Hard Knock Lessons Learned From a Purchasing Pro - Softcover

DePaoli, Dr. Tom

Softcover

ISBN 10: 159457250X ISBN 13: 9781594572500

Publisher: BookSurge Publishing, 2004

Synopsis

Common Sense Purchasing is a no holds barred practical guide to purchasing and negotiations success. If you don't like consultants, buzzwords and theory this book is for you. Straight forward and to the point you will not be able to put it down until you have finished the purchasing journey.

About this title

From the Author

One of my favorite mistakes is when we wentthrough a disciplined and arduous supplier selection process.  The selection process was done by a crossfunctional team. All the numbers were favorable and the supplier had goodreferences and was eager to get started.The total cost of ownership savings were well over $1,000,000.  We did all our homework and were veryconfident of our decision. The new supplier promised to provide a supplierrepresentative on site for 20-30 hours per week. We even had a celebration.  The supplier representative started and Ithought that things were going well. Unfortunately our maintenance personneljust could not get along with the representative and conflicts arose.  It was more a personality issue rather thancompetence. Luckily the supplier had another representative available whoreplaced the initial representative and was well liked by our internalcustomers. The lesson learned was that once again, relationships are not onlycritical, but "king" in supply management.  We added to our supplier selection process aninterview (performance based) of any on-site representatives by our internal customers,like maintenance, and a reference check and discussion with other customersabout the on-site representative.  Alsodon't celebrate prematurely.

From the Inside Flap

How does the rising role ofsocial media/networking relate to the need to emphasize the value ofrelationships?
 
Social media/networkingimproves or enhances the value of relationships. They are an excellent tool(s)not only for developing deeper relationships but getting to know people in thesupply chain on a personal basis. This is an asset and people appreciateattempts to build better personal relationships.  It is the Internet version of playing golf withsomeone. You get to know a lot about an individual when you play eighteen holesof golf with them. Obviously social media is not that intense but it does helpbuild relationships. Bottom line it helps build trust, especially internallywhich is a key for managing change. Some argue that we should not build thesetype if personal relationships with a supplier or internal customers but Idisagree. More often than not, this type of relationship will help especiallyin a crisis. Besides what is the alternative?Being constantly adversarial adds no value. The watch out is that youcannot let personal relationships sway your judgment when major decisions haveto be made. Being honest with a supplier, when they are deselected ordisqualified, is always the best option. Most experienced purchasingprofessionals can remain objective and not let personal relationships derailtheir judgment. They can usually avoid what I call Supplier Stockholm Syndrome.

Edition details

• Publisher: BookSurge Publishing
• Publication date: 2004
• ISBN 10: 159457250X
• ISBN 13: 9781594572500
• Binding: Paperback
• Language: English
• Number of pages: 92