Archive for January, 2007

Contributions of a Great Purchasing Manager

A subscriber to the FREE Purchasing Resources Program has an upcoming interview for a purchasing manager job and wanted to know how to answer the interview question “What will your contributions be?” Now, I don’t know what this individual’s contributions will be. But I can tell you what contributions a great purchasing manager makes. They include: 1. Cost savings2. Improved…

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Direct vs. Indirect Spend

One of my students asked about the difference between direct and indirect spend, so I thought I’d post my reply here so that others may benefit from the definitions, too… Direct spend refers to purchases of goods and services that are directly incorporated into a product being manufactured. Examples include raw materials, subcontracted manufacturing services, components, hardware, etc. Indirect spend…

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Learn Purchasing A New Way!

Yesterday, we launched a new service to help you learn more about purchasing. We’ve been offering audio and video podcasts on purchasing since August. And for those of you who can’t listen or watch multimedia at your desk (even if it is educational), you can now purchase transcripts of these podcasts. The transcripts will be in PDF format so you…

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What Does Football Have To Do With Purchasing?

This week has been massive in terms of sports news in Pittsburgh, primarily due to the hiring of the new Steelers’ head coach, Mike Tomlin. One thing that has been a frequent topic of sports articles about the hire is that Mr. Tomlin is the Steelers’ first African-American coach and their first coach hired after the “Rooney Rule” was implemented…

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Cost Savings

I hope that you have enjoyed the article “Cost Savings: Tips For Recording Them.” Before I started Next Level Purchasing, I had worked on developing a software package that logged and reported cost savings. I think I still have the prototype on a old Texas Instruments laptop at home. If I get the chance, I’ll take a look at the…

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Supplier Guarantees

With my job, I am practically thinking about procurement 24×7. And, often, procurement principles manifest themselves in my personal life. Sometimes, the same principle pops up multiple times. That was the case in the past week with the topic of supplier guarantees. There is definitely a difference between supplier guarantees in B2B and B2C. B2B supplier guarantees are more easily…

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Purchasing Magazine’s Business Report

In this week’s Monday Mid-Day Business Report from Purchasing Magazine, they share some of the statistics from the 2007 Purchasing & Supply Management Career & Skills Report regarding the most desired skills in purchasing. Check it out here. The MMBR is definitely worth 5 minutes of your time once a week. It mostly focuses on changes in market pricing for…

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Career & Skills Report Facts: Part II

Another interesting statistic from the 2007 Purchasing & Supply Management Career & Skills Report is that the number of purchasing jobs preferring candidates with the SPSM Certification that were posted on our site doubled in the second half of 2006 as compared with the same period of the prior year. Obviously, this is a good indication of the growing recognition…

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Negotiation Strategies For Getting Cost Breakdowns

Yesterday’s article, “How To Negotiate Price Increases,” spawned some great discussion between myself and some subscribers to the FREE Purchasing Resources Program. In this post, I’ll share some paraphrased excerpts of one particular dialogue regarding challenges associated with obtaining cost breakdowns from incumbent suppliers who may be in a single- or sole-source situation. I have done a lot of negotiating…

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Career & Skills Report Facts: Part I

Earlier this month, we released our “2007 Purchasing & Supply Management Career & Skills Report.” This report, which was based on a survey in which more than 1,200 purchasing professionals participated, shares many great facts about trends that are shaping the profession. You can get the report for FREE when you sign up for the FREE Purchasing Resources Program, but…

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