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Casual Articles - Purchasing Management - A Driving Force to Maximizing Profitability
Why Learning Organisations Make Horse Sense rts company strategic initiatives. This obviously includes maximizing profitable growth while maintaining world class service and customer satisfaction.Flogging a dead horse is a commonly used idiom here in the UK. If someone is trying to convince someone else to do or feel something without any hope of succeeding, we say they're flogging a dead horse. This is used when someone is trying to raise interest in an issue that no-one supports anymore; beating a dead horse will not make it do any more work. 1. Similarly, the tribal wisdom of the Dakota Indians, passed on from generation to generation, says that, "When you discover that you are riding a dead horse, the best strategy is to dismount." Rather than seeing a situation for what it is far too many individuals, businesses, public service and government organisations prefer to live in denial rather than accept the wisdom of the Dakota Indians. Instead, it seems people just love to develop alternative strategies for flogging dead horses. Taken from various articles and blogs currently on the Internet here are just a few suggestions:• The horse isn’t really dead, we just need a better whip• It’s not the horse it’s the rider that’s at fault• If you don’t get up you’re sacked, Silver!• Commission a study of h Keep in mind the fact that the supply chain will exist whether or not we have a competent, Superstar Purchasing Manager running the buy side of our profitability equation. (E-mail rick@ceostrategist.com for a copy of the article “Margin Management--Using the Supplier Profitabil Productivity and the Need for Better Questioning Skills Purchasing Managers, purchasing agents and buyers are the life support system of your supply chain. I often use the phrase in leadership training; “You’re only as good as the people you surround yourself with.” That phrase also applies to one of the most critical functions in wholesale distribution, the Purchasing Manager. So what does being the life support systems to supply chain management mean? It means purchasing is the center of the universe, the equator, the fulcrum when it comes to meeting customer demands. This is a common fact. We all know it. Most of us say it and yet few of us really understand it. Even the US Department of Labor Bureau of Statistics supports it with reams of data on purchasing. However, the more important, often overlooked, misunderstood and underutilized concept is that Purchasing Managers in our industry are really the “Tendons and Muscles” that enhance profitability within the supply chain itself.Asking questions is a simple skill mastered by few to the detriment of many. Asking the wrong questions can result in a sale being lost, an employee being misguided, a manager not being listened to and projects poorly planned.It is not as simple as “asking open questions” as some consultants would have it. To get the maximum out of asking questions, we need to ask the right open question or in some cases the right closed question.It is true that asking open questions to find out facts is much faster than asking closed questions. If you are not convinced then try this out with your colleagues. Have one of them find out what movie you last went to, who you went with, how you got there, where it was screened, when you went and why you went. Have them ask questions which can only be answered “yes” or “no”.In my training sessions it takes from twenty to fifty questions to find out the answer and many times the answer as to why the person went to the movies is never answered.Try the same process again, changing the topic to your last time away on holiday. Ask them to find out what you did, where you did it, how you go Most of us “Talk the Talk” and can quote supply chain gospel. In fact, deep down we really do believe that profitability in the industry is driven by the supply side of the equation. Yet, in reality, we may not really understand the true value, the contributions, the skill set required for success and how to recognize or leverage talent within our own organization for this critical piece of our overall success formula. Supply Chain Management (SCM) Understanding SCM is basic to understanding the necessary purchasing culture required to leverage our ability to maximize profitable growth. It begins with understanding your markets, your customer base and the future of the industry. It is critical that we understand SCM and how to create an effective purchasing culture that supports company strategic initiatives. This obviously includes maximizing profitable growth while maintaining world class service and customer satisfaction. Keep in mind the fact that the supply chain will exist whether or not we have a competent, Superstar Purchasing Manager running the buy side of our profitability equation. (E-mail rick@ceostrategist.com for a copy of the article “Margin Management--Using the Supplier Profitabili Fear Factor Packaging f the universe, the equator, the fulcrum when it comes to meeting customer demands. This is a common fact. We all know it. Most of us say it and yet few of us really understand it. Even the US Department of Labor Bureau of Statistics supports it with reams of data on purchasing. However, the more important, often overlooked, misunderstood and underutilized concept is that Purchasing Managers in our industry are really the “Tendons and Muscles” that enhance profitability within the supply chain itself.I'm getting really nervous with the daily security threats that abound in the news. People forget that packaging has an important role to play in helping keep our products safe for consumption. Remember the Tylenol packaging incident? Many packaging applications, such as the tamper evident seal and the shrink wrap band, were invented as a result of that incident. Frighteningly, a major concern should be our food supply. One bio-terrorism incident in our food supply could be a thousand times more deadly than 9/11.Packaging is starting to get some media play on this topic. I just read an article that tied packaging to the bird flu. Really! Stay tuned next week for "How Packaging Causes Global Warming." I am just kidding. But let’s get serious. There are some pretty important ways that packaging impacts our product security. In fact, I recently wrote about it in my 13 Packaging Trends for 06. The premise is that keeping products secure will be one of the most important influences on purchasing in the future.Smart or intelligent packaging has an important role to play in protecting the public. New innovations are surfacing every Most of us “Talk the Talk” and can quote supply chain gospel. In fact, deep down we really do believe that profitability in the industry is driven by the supply side of the equation. Yet, in reality, we may not really understand the true value, the contributions, the skill set required for success and how to recognize or leverage talent within our own organization for this critical piece of our overall success formula. Supply Chain Management (SCM) Understanding SCM is basic to understanding the necessary purchasing culture required to leverage our ability to maximize profitable growth. It begins with understanding your markets, your customer base and the future of the industry. It is critical that we understand SCM and how to create an effective purchasing culture that supports company strategic initiatives. This obviously includes maximizing profitable growth while maintaining world class service and customer satisfaction. Keep in mind the fact that the supply chain will exist whether or not we have a competent, Superstar Purchasing Manager running the buy side of our profitability equation. (E-mail rick@ceostrategist.com for a copy of the article “Margin Management--Using the Supplier Profitabil All about Auto Shipping d Muscles” that enhance profitability within the supply chain itself.Auto shipping is a process of shipping your auto from a dealer's lot or from any other location that connects consumer, shipping dealers and auto shipping companies in the most efficient possible way. Consumers and dealers are using vehicle shipping services to move autos both for customers and themselves. Auto shipping companies are highly available on the online and so it becomes easy for you to locate and request that each of the shipping companies, which you find to their best to offer you a quote.Many cars and other vehicles can be shipped at one time as one can afford as well. All you need to do is to advices in your request for online quote the number of autos, which you require to ship. You would be able to add as many autos as you desire, as long as they all are appearing from and destined for the same region or area.Car shape and size is extremely significant for auto shipping companies, particularly those in commission enclosed trailers. For example, many of the enclosed trailers cannot ship heavy SUVs like Ford Expeditions. Perhaps the car has been lowered considerably or might be hard to get up a trailer ramp. Ma Most of us “Talk the Talk” and can quote supply chain gospel. In fact, deep down we really do believe that profitability in the industry is driven by the supply side of the equation. Yet, in reality, we may not really understand the true value, the contributions, the skill set required for success and how to recognize or leverage talent within our own organization for this critical piece of our overall success formula. Supply Chain Management (SCM) Understanding SCM is basic to understanding the necessary purchasing culture required to leverage our ability to maximize profitable growth. It begins with understanding your markets, your customer base and the future of the industry. It is critical that we understand SCM and how to create an effective purchasing culture that supports company strategic initiatives. This obviously includes maximizing profitable growth while maintaining world class service and customer satisfaction. Keep in mind the fact that the supply chain will exist whether or not we have a competent, Superstar Purchasing Manager running the buy side of our profitability equation. (E-mail rick@ceostrategist.com for a copy of the article “Margin Management--Using the Supplier Profitabil How to Find a Profitable Australian Business Opportunity ation for this critical piece of our overall success formula.All large business enterprises must have started with a simple business opportunity. Starting a business in Australia is almost the same as starting a business anywhere else – you’ve got to comply with government rules and invest time, effort, and money. Business opportunities are quite abundant in the continent – you can even choose to buy an established business, start a business from scratch, or even enlist in a business endeavor sponsored by a big company.Business opportunities can be divided in categories. In Australia, the most popular businesses are under the food category. Cafes and restaurants are plenty and they are present in almost all cities of Australia. The Food retail business is also thriving, and its the bakers and confectioners that are heading the pack. So if your expertise lies within this category, then with a good business plan, location etc, you will be sure to succeed! However, you have to understand that because the food industry is currently thriving, other people are jumping on the same opportunity like you are - and that means you should prepare for the loads of competitors you will go up against. Supply Chain Management (SCM) Understanding SCM is basic to understanding the necessary purchasing culture required to leverage our ability to maximize profitable growth. It begins with understanding your markets, your customer base and the future of the industry. It is critical that we understand SCM and how to create an effective purchasing culture that supports company strategic initiatives. This obviously includes maximizing profitable growth while maintaining world class service and customer satisfaction. Keep in mind the fact that the supply chain will exist whether or not we have a competent, Superstar Purchasing Manager running the buy side of our profitability equation. (E-mail rick@ceostrategist.com for a copy of the article “Margin Management--Using the Supplier Profitabil Time Is Of The Essence In Business rts company strategic initiatives. This obviously includes maximizing profitable growth while maintaining world class service and customer satisfaction.You must have heard the expression that time is money. Well in business. You can multiply it tenfold. There are so many things to be done in business that the little things often get done instead of the important things such as marketing and selling. Time is so important because the longer you are away from what you should be doing, the longer you are not making money. You often hear an employer saying that every day you are costing me x amount of money. This is so very true and even more so when you are self employed and working for yourself.Think of all the bills that are going to come in the door no matter what you do. To offset this, you must use your time productively to start earning good money. This is why the top people always put selling and marketing first on the agenda and get to the little things later such as filling, office work etc. It is often said that it takes a genius to work from home 24/7 and earn a good income. You need to be on the ground in the faces of your customers so to speak. Obviously with an internet marketing career, this is not possible.The next best thing is to keep in contact and follow up a Keep in mind the fact that the supply chain will exist whether or not we have a competent, Superstar Purchasing Manager running the buy side of our profitability equation. (E-mail rick@ceostrategist.com for a copy of the article “Margin Management--Using the Supplier Profitability Ratio”) There are a number of academic definitions of SCM published today for reference. However, I believe the definition can be stated in these terms: “Supply Chain Management is the coordination of partnerships between the manufacturer, importer, distributor and customer that results in maximizing growth, profitability and customer satisfaction.” How Do We Create the Successful Purchasing Culture? The Purchasing Manager must become the Driving Force. Sometimes the simplicity of the answer lies within the complexity of the question. Start by asking the following questions: 1. How was the Purchasing Manager selected? 2. What criteria were used in the selection process? 3. What kind of qualifications beyond seniority was brought to the table? 4. What kind of training did the Purchasing Manager receive after being promoted? 5. Does training include leadership skill development, coaching, mentoring, negotiations, sales effectiveness and team building? Keep in mind that the purchasing environment at many companies is strictly determined by size and revenue stream of the organization. In larger organizations there is a distinction between the duties of a Purchasing Manager, a Buyer and a Purchasing Agent. And in some cases we just employ order placers with little or no responsibility for growth and profitability. Purchasing agents and buyers often focus on routine tasks and they may specialize in particular product lines or other groups of related commodities. The Purchasing Manager needs to focus on the strategic side of the business, tracking market trends, customer preferences, price trends, cost effectiveness and managing the supply chain. This includes evaluating a
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