PurchTips - Edition # 22

 

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Purchasing Best Practices Definitions

By Charles Dominick, SPSM, SPSM2, SPSM3

What Are They Talking About?

Many organizations are paying hundreds of thousands of dollars to consultants to implement purchasing best practices. These consultants impress executives with their knowledge of the purchasing profession and their use of terms such as "commodity teams," "process mapping," and "total cost of ownership." Many of these terms are simple names for principles that we apply daily. Here are a few terms and their definitions:

Benchmarking: The comparison of one organization's purchasing performance indicators or processes with those of other purchasing departments or external sources.

Buying Plan: A document prepared annually that summarizes the purchasing department's approach to acquiring each major group of products and services. The buying plan usually includes a forecast of demand, an estimate of spending, and the actions taken by the purchasing department to prudently manage the purchase of each group of products and services.

Commodity Team: A group of individuals representing various departments who are responsible for making key decisions relative to the purchase of a product or service.

Process Mapping: The act of creating a diagram that illustrates all tasks and decisions associated with a process.

Stakeholders: Individuals within an organization who have a vested interest in a specific product or service to be acquired.

Strategic Plan: A document that outlines a long-range approach to purchasing and is closely associated with organizational strategy.

Total Cost of Ownership: An estimate of all costs associated with the acquisition, use, and disposal of a product or service.

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Spotlight On Professional Development Opportunities

SPSM Certification

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:

  • FREE $30 gift certificate to Amazon.com!
  • FREE CD-ROM with printer-friendly versions of the class materials!
  • FREE Purchasing Performance Measurement spreadsheet template!
  • FREE audio CD about purchasing job security!

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:

www.NextLevelPurchasing.com/spsm.html



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Included in your free Starter Kit:

  • Access to two lessons from courses that are part of the Senior Professional in Supply Management® Program
  • A Certification & Training Planning Template
  • Case studies
  • A free Basic Membership in the NLPA

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If you are already a member of the NLPA, click here to login and visit the "Starter Kit" tab to access these resources.