10 Signs of a Modern Purchasing Department

PurchTips - Edition #94 February 21, 2006

By Charles Dominick, C.P.M., SPSM

How Modern Is Your Purchasing Department?

The purchasing function has changed dramatically over the last several years. And it continues to change and evolve almost daily. This edition of PurchTips contains 10 characteristics of modern purchasing departments. Use it as a checklist.

If your department doesn’t meet each criterion on this list, don’t be discouraged. Instead, use this checklist as a set of goals to which you aspire. So, without further fanfare, here are 10 signs of a modern purchasing department…

1. The head of purchasing reports directly to the CEO of your company
2. Your department is responsible for procurement in “non-traditional” spend areas such as healthcare benefits, fleet management, facilities and construction, temporary labor, and travel
3. Purchasing is actively involved in senior management level, long-term strategic planning
4. The purchasing staff is responsible for manually placing only a small percentage of your organization’s purchase orders
5. Logistics and inventory functions either fall under Purchasing on the organizational chart or are integrated into the work of purchasing staff
6. Maverick buying is a thing of the past
7. When dealing with large, frequently used suppliers, no paper is exchanged between the time that a need for a product or service is defined until the time that the supplier receives payment
8. No major sourcing process is conducted without the use of a cross-functional team
9. You are buying from global sources and measuring non-domestic spend as a percentage of total spend
10. Your department has social responsibility goals and measurements in place

(Keep reading for a FREE Offer)

Spotlight On Professional Development Opportunities

What is the secret to a rewarding purchasing career? How are purchasing professionals like you earning:

• High-level job opportunities?
• Great performance evaluations?
• 15% raises?

You don’t have to wonder any more! We have added a new section on our site called “SPSM Certification^SM Success Stories.” In this section, you can watch video slide shows and listen to real-life purchasing professionals tell you how their ambition and achievements helped them have more rewarding careers.

To learn how your peers have earned what purchasers want more of in their careers – more opportunities, more respect, and more money – visit:

www.NextLevelPurchasing.com/spsm

The Latest Purchasing News!

• Since the last edition of PurchTips, at least 4 new jobs preferring candidates with the SPSM^SM Certification have been posted at www.NextLevelPurchasing.com/jobs
• Rares Tristan Hojda, a purchasing supervisor from Timis, Romania, won the $30 gift certificate to Amazon.com in our “Link To Us Contest!”

FREE Offer!

Do you want to earn discounts on our training, prizes, and possibly even FREE enrollment in one of our classes? We’ve recently overhauled our Very Important Purchasers (VIP) Program to allow our students to earn rewards for telling their colleagues about Next Level Purchasing.

If you have enrolled in one of our full-length classes costing $200 or the Senior Professional in Supply Management^SM (SPSM) Certification Program, you owe it to yourself to check out how participating in the VIP Program can benefit you.