PurchTips - Edition # 47
Sharing Purchasing's Bottom Line Value
By Charles Dominick, SPSM, SPSM2, SPSM3
This resource begins with a story...
ABC Company's owners were unhappy with its recent profits. Every year, ABC's pre-tax profit was equal to about 10% of its sales. This past year, ABC had sales of $100 million and pre-tax profit of $10 million.
ABC's owners demanded that the president, Charles Aybisi, increase pre-tax profits to about $15 million or else he would be fired. At first, Aybisi thought that he would have to increase sales by 50% to achieve the profit target. But he examined this financial breakdown of ABC's operations (all amounts in millions of dollars):
ABC never paid much attention to its purchasing department in terms of financial goals or training. However, Aybisi wondered what would happen if purchasing received more emphasis. He mused, "What would the effect on profits be if we looked to purchasing to save money on the goods and services we buy?" Then, he drew a new financial breakdown assuming that purchasing could save 10% on goods and services:
Abisi had an enlightening moment: a 10% reduction in purchase prices (a realistic goal if using best practices) would produce the same effect as a 50% spike in sales!
What do you think is easier: reducing purchase prices by 10% or increasing sales by 50%? Obviously, reducing purchase prices! Using techniques like negotiation, competitive bidding, standardization, and value analysis, well-trained purchasing departments can contribute to profit improvement like few others.
Want others in your organization to understand the value of purchasing? Share this resource with them. Then figure out how you can similarly impact the bottom line.
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Spotlight On Professional Development Opportunities
Are you tired of not getting enough opportunities, respect, and money out of your purchasing career? Well, guess what? Nothing will change unless you take action towards becoming a world-class purchasing professional.
You see, today's employers refuse to reward employees for yesterday's skills.They demand that purchasing professionals like you use the most modern skills and achieve unprecedented results. They want you to save more money, achieve better operational performance, and reduce risk.
Is lacking a purchasing certification keeping you from getting the results, opportunities, respect, and money that you want out of your career? Today's employers refuse to reward employees for yesterday's skills. They want you to save more money, achieve better operational performance, and reduce risk. They demand that purchasing professionals like you achieve unprecedented results and without the most modern skills that can be a challenging feat!
So how can you acquire the most modern skills, achieve meaningful results, and convincingly prove your capabilities to today's employers? There is an impressive purchasing certification program that will teach you what you need to accomplish all of this and more. It is the SPSM® Certification, earned by completing the Senior Professional in Supply Management® Program. And you could earn it in less than a year - maybe even much less than a year!
Earning your SPSM® Certification by completing the Senior Professional in Supply Management® Program is the action to take if you want to bring the most modern purchasing practices into your organization and achieve your career potential. Learn how to earn your SPSM® Certification (and perhaps get an iPad) (with the option of getting a Study Guide on an iPad) at:
Distinguishing yourself as an achiever in purchasing is key to sustaining a rewarding career, even in these difficult economic times. Earning your SPSM® Certification by completing the Senior Professional in Supply Management® Program is to take if you want to bring the most modern purchasing practices into your organization and achieve your career potential. Learn how to earn your SPSM® Certification (and perhaps get an iPad) at:
Earning your SPSM® Certification by completing the Senior Professional in Supply Management® Program is the action to take if you want to bring the most modern purchasing practices into your organization and achieve your career potential. And if you sign up for the Senior Professional in Supply Management® Program on or before May 31, 2008, SPSMSM Certification Program on or before 4/30/2007, you also get these and other bonuses valued at over $700:
To learn how to earn your SPSM® Certification and get these valuable bonuses, visit:
Earning your Senior Professional in Supply Management® (SPSM) Certification is the action to takeif you want to bring the most modern purchasing practices into your organization and achieve your career potential. Learn how to earn your SPSMSM Certification at:
Learn how to earn your SPSM® Certification at:
There are four irreversible business and technology trends that are likely to cost purchasers like you their jobs in the next 12 months. Do you know what they are? Do you know how to protect yourself from their effects? If not, you should get your FREE report entitled "Career Survival In Supply Management."
To get your FREE copy of
"Career Survival In Supply Management,"follow the instructions at
Copyright 2004. This article is the property of Next Level Purchasing and may not be copied or republished in any form without the express written consent of Next Level Purchasing. Click here to request republishing permission.
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Other Editions of PurchTips:
Free Procurement Training & Certification Starter Kit
This Starter Kit gives procurement professionals like you a clear idea on what it will take to become certified. You'll get an excellent feel for what you will need to learn and how long it will take.
Included in your free Starter Kit:
Together, these materials will help you decide how well the SPSM® Certification can help you achieve your career goals.
So, what are you waiting for? Begin your pursuit of a more rewarding procurement career get your Procurement Training & Certification Starter Kit now by signing up for a free NLPA Basic Membership!
If you are already a member of the NLPA, click here to login and visit the "Starter Kit" tab to access these resources.