PurchTips - Edition # 114

 

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Accountability In Purchasing Processes

By Charles Dominick, SPSM, SPSM2, SPSM3

Are Your Purchasing Processes Solid?

Today, executives demand more accountability for purchasing processes and performance. Here are three comparisons that executives will, and you should, make to hold your purchasing processes more accountable.

Initial Supplier Selection Criteria vs. Final Supplier Selection Criteria. Sourcing teams often develop supplier selection criteria before soliciting proposals then change the criteria after proposals arrive. While it?s sometimes necessary to change criteria once more details are learned, and I don?t recommend sticking with a plan when you know that the plan is flawed, chronic changing of selection criteria after receiving proposals indicates two things: (a) that it is likely that the criteria is being changed to unethically select pre-determined preferred suppliers and (b) that the purchasing team is not skilled at the basics of successful sourcing. Thus, the percentage of times that selection criteria are changed is a metric that can be tracked to determine accountability and serve as the basis for improvement efforts.

Estimated Savings At Contract Signing vs. Actual Savings At Contract Expiration. When executives sign contracts after sourcing processes, they are usually presented with the estimated savings that the contracts will produce. But estimated savings alone are no longer good enough for today?s executives who desire to gauge purchasing departments? effectiveness at projecting the financial impact of their decisions and ensuring that savings are realized. Therefore, the ratio of actual savings to estimated savings is another metric that measures accountability and serves as the basis for improvement efforts.

Increased Savings vs. Increased Problems. Inexperienced buyers whose performance is measured solely on cost savings are likely to get into a pattern of always switching to lower-cost suppliers without regard to the sacrifice of quality, delivery, or service. To ensure that proper decisions are made, it shouldn?t only be price that?s compared with a baseline, but also supplier performance. If prices decrease but problems increase, this type of accountability measure can uncover ineffective purchasing processes as well as weaknesses in the way that the purchasing department is measured.

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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



Purchasing News

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Free Procurement Training & Certification Starter Kit

This Starter Kit gives procurement professionals like you a clear idea on what it will take to become certified. You'll get an excellent feel for what you will need to learn and how long it will take.

Click here to learn more

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

Together, these materials will help you decide how well the SPSM® Certification can help you achieve your career goals.

So, what are you waiting for? Begin your pursuit of a more rewarding procurement career – get your Procurement Training & Certification Starter Kit now by signing up for a free NLPA Basic Membership!

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