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Purch-lympics Entry #1 - Round #3
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John Ransom
Senior Purchasing Agent, Virginia, USA
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"It's ironic that most essay competitions ask you to describe a problem you've encountered and what your solution was to bring about a positive outcome. It seems that's how we're programmed to think with constant media bombardment full of negativity. Bad news, tragedy, and problems grab people's attention and sells. Where's the "glass half full" optimism? The "we can do it" spirit that made America great seems to have diminished.
Now please understand, I'm a realist, and not naive to the fact that problems arise in business and day to day life. However, the solution and ultimate success comes in the attitude towards the opportunity presented. My company and entire industry is currently at a point where such change in thought and attitude are needed to survive. So the problem I'm presenting is "the positioning of my company to vendors as a viable entity during a time of contraction in our market."
I work for a large independent building materials supply company that's making necessary downsizing to survive a housing industry that's seeing its worst conditions in decades. Builders, suppliers, wholesalers, and manufactures are struggling with the perfect storm. Historical low demand, record low commodity prices, and all-time high fuel are causing every part of the chain to bleed. The large publicly trade companies have taken a stance to "buy the business". There is increasing pressure to cut your prices to survive, which filters right up the chain through my office to the vendors we've partnered with. Rumors abound daily about companies possibly going out of business or being sold. The challenge becomes determining which vendors will survive and presenting your company as a survivor.
Our department has taken the high road of positive thought in designing an action plan for fighting this challenge. Homework has been done to minimize risk in determining our partners. Product groups have been consolidated to present strength and buying power. The management of the supply chain has been balanced between responsiveness and efficiency. These actions are succeeding and will allow Roper Lumber to celebrate its 100th anniversary in 2009."
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