PurchTips - Edition # 23

 

This is the Web-based version of this article. Click here for the printer-friendly version.
* More Purchasing Articles

Picture of Charles Dominick, SPSM, SPSM2, SPSM3

Purchasing Goals: The Good, The Bad, & The Ugly

By Charles Dominick, SPSM, SPSM2, SPSM3

Purchasing Goals?

We'll go from worst-to-best in our discussion of the objectives that purchasing departments set for themselves?

The Ugly - No Goals. Purchasing departments who have no documented goals are not moving in any direction whatsoever. Their value is not measured nor communicated to management. These purchasing departments are likely to find themselves being downsized or outsourced.

The Bad - Vague Goals. Having goals that fail to state exactly what needs to be accomplished is almost as futile as having no goals. These types of goals make a subjective process out of distinguishing good performance from bad. An example would be "Improve control of spending." What does that mean? Does that mean that requiring 25 signatures to make a purchase will be doing a "good job?" Could a purchasing agent think control was sufficiently improved yet an executive disagree?

The Good - Specific & Measurable Goals. Simply being specific and using numbers makes goals infinitely more effective. Let's modify our last example: "Improve control over spending by increasing expenses under contract by 25% over the previous year." Now that's better. You know what is meant by "improve control over spending." The numbers enable you to determine whether you exceeded, met, or failed to meet your goal. If you increased the expenses under contract by only 20%, you came up short. If you achieved a 30% increase, you've done very well. A goal like this gives you a clear target to shoot at.

The Great - Money-Based Goals. Great goals are not only specific and measurable, but they are expressed in the language of business - money! The reason you reduce inventory, increase contract coverage, or reduce lead time is to put your organization in a better financial position. So, translate other statistics into money. Continuing with our example?"Improve control over spending by increasing expenses under contract by $3 million."

The Best - Organizational Strategy-Based Goals. The best goals go a step beyond great goals. They are tied to the strategy and goals of the overall organization. "Improve control over spending by increasing expenses under contract by $3 million" is a great goal and may be the best goal if the organization's goal is to maintain or increase profitability. But what if the organization's #1 goal was to be the first to market a new widget? There is a fatal disconnect between executive management and purchasing management. Speed, rather than expense control, should be the priority. The best goals facilitate the accomplishment of organizational goals.

(keep reading for a FREE Offer)

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



FREE Offer!!!

Do you want to research the purchasing salary you should be earning? Get "The Guide To Benchmarking Your Purchasing Salary" today!

To Get "The Guide To Benchmarking Your Purchasing Salary" For FREE, Please Visit
www.NextLevelPurchasing.com/salary.


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.