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Practices: Planning: Participate in Purchases Commentary If Purchasing adds value, why are so many expenditures "untouchables?" Purchasing's reach generally extend to al of the direct materials and services required for operations. However, when we talk about legal services, advertising, benefits and the like Purchasing’s role is at best a paper pusher. This exists because services are regarded by many executives as specialized requiring a distinctive knowledge of the service. Hogwash - if purchasing can add value in complex machinery and high tech materials - it can add value to professional services as well. The purchasing process is the same. The only complexity is that hourly rates is only part of the equation. Total hours must also be accounted for. Many buyer of services skip past the debate about hours and rates and move directly to buying a deliverable. The successful legal defense of a injury claim or an ad campaign that yields an increase in sales. The real issue is that everyone, especially specialists, love to buy! Thus the solution is to find a friend in law, finance, or marketing and collaborate on one buying decision. If you have a success watch out because you will have a flood of requests for help. The need for participation in the broad array of purchases is also self preservation. Since you have likely rung the big savings out of the direct materials, these indirect purchases are the new savings that Purchasing can generate.
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