I hope that you enjoyed the article “How To Be A Better Purchasing Professional.”
I thought that I’d supplement the article here with a complete example of how you might work through this process. I’m going to keep it simple. And I encourage you to do the same.
When it comes down to certain things, some people like to make things unnecessarily complicated. And that often stands in the way of making any improvement at all. So here is that simple example (keep in mind that this is for a fictional purchasing professional in a specific situation, not a general guideline for anyone).
1. Define the criteria for being a good purchasing professional. Cost savings and continuity of supply.
2. Determine metrics that support the criteria. Cost savings = (a) Actual cost savings realized in current fiscal year and (b) Percentage of orders delivered on-time.
3. For each metric, determine the value that would separate “good” performance from “average” or “mediocre” performance in your particular situation. Actual cost savings realized in current fiscal year = $12,000,000. Percentage of orders delivered on-time = 95%.
4. Establish a baseline of your current performance. Actual cost savings realized in previous fiscal year = $10,000,000. Percentage of orders delivered on-time = 89%.
5. Analyze what you do for improvement opportunities. Realize that recent negotiations have not been successful, so identify negotiation training options. Realize that materials orders are placed with dozens of different suppliers for similar goods, so plan to conduct a sourcing process for non-consolidated materials. Realize that performance is not being communicated to largest supplier, so conceive a supplier performance review process.
6. Improve your performance. Engage in negotiation training. Complete the sourcing process for non-consolidated materials. Conduct your first supplier performance review.
7. Hold yourself accountable. Commit to management to apprise them of your progress in monthly reports.
See, wasn’t that easy?
What’s stopping you from becoming a better purchasing professional?
To Your Career,
Charles Dominick, SPSM
President & Chief Procurement Officer
Next Level Purchasing, Inc.
Struggling To Have A Rewarding Purchasing Career?
Earn Your SPSM® Certification Online At