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Modern Purchasing Roles

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Modern purchasing development

Modern Purchasing Roles

  1. 1. Purchasing development and modern purchasing roles Mattias Hultheimer, CEO, EFFSO
  2. 2. Agenda Modern purchasing roles 09-06-06 Todays purchasing challenges 2 Modern purchasing roles 3 Introduction to EFFSO 1
  3. 3. What is EFFSO? Modern purchasing roles 09-06-06 We provide Tools and Talents for Professional Purchasing organizations. <ul><li>Recruitment services </li></ul><ul><li>Toolbox </li></ul><ul><li>Training </li></ul><ul><li>Consulting services </li></ul><ul><li>Started one year ago </li></ul><ul><li>Annual turnover 1 M USD </li></ul><ul><li>5 permanent employees </li></ul><ul><li>15 consultants </li></ul><ul><li>Some of Sweden’s leading experts </li></ul>
  4. 4. Agenda Modern purchasing roles 09-06-06 Todays purchasing challenges 2 Modern purchasing roles 3 Introduction to EFFSO 1
  5. 5. The traditional purchasing role “ Traditionally, purchasing was seen as essentially a clerical function. It was focused on getting the right quantity and quality of goods to the right place at the right time at a decent cost. The typical buyer was a shrewd negotiator whose primary responsibility was to obtain the best possible price from suppliers and ensure that minimum quality standards were met. Instead of using one supplier, the purchaser would usually take a divide-and-conquer approach to purchasing — buying small amounts from many suppliers and playing one against the other to gain price concessions. Purchasing simply was not considered to be a high-profile or career fast-track position — when surveys were taken of organizational stature, purchasing routinely rated in the lowest quartile .” http://www.referenceforbusiness.com 09-06-06 Modern purchasing roles
  6. 6. Statement 09-06-06 Modern purchasing roles WHY?
  7. 7. Accelerated Globalization 09-06-06 Modern purchasing roles
  8. 8. Modern purchasing roles 09-06-06
  9. 9. Global competition forces you to find smarter solutions Modern purchasing roles 09-06-06 150.000 € 15.000 €
  10. 10. Value Add - % for Swedish Industrial Companies 09-06-06 Modern purchasing roles
  11. 11. Supply Chains are becoming longer and more complicated Modern purchasing roles 09-06-06
  12. 12. Long Supply Chains = Greater risks Modern purchasing roles 09-06-06
  13. 13. Global Warming – The backside of Global Sourcing? - The Inconvenient Truth – 09-06-06 Modern purchasing roles
  14. 14. Development of purchasing role Modern purchasing roles 09-06-06 Price Negotiation Market Testing via Competitive Quotes Expediting Information and Parts Delivery Quality Problems Administration Price Negotiation Administration Component Development Strategies Supplier Strategies Supplier Measurement and Improvement Activities Cost Reduction and Cost Planning Activities Traditional Role New Role % of Buyer’s time 100% Additional new activities
  15. 15. Modern business challenges require a broad approach to purchasing Superior quality Superior delivery accuracy Innovative advantages Shorter lead times Cash-flow & Return on Capital employed Cost advantages Improved business position Competitive advantage Lower costs through VE/VA Lower prices Lower quality costs Less working capital Lower administrative costs Lower logistics costs Risk management Competitive advantage 09-06-06 Modern purchasing roles
  16. 16. Modern purchasing challenges requires you to handle multiple issues Sourcing Strategy 09-06-06 Modern purchasing roles Commercial Logistics Technology Strategy Personnel Current situation 2009 2010 Long term target Organization Development Quality Wanted position
  17. 17. Set up goals and work systematically Goals and performance metrics Cost reduction through improved sourcing Illustrative 09-06-06 Modern purchasing roles Primary goals Present situation Q3 2008 Q4 2008 2009 Vision Secondary goals • Product quality (%) • Delivery promptness (%) • Raw material inventory (MSEK) • Price evolution (index) • Frame contractual coverage (%) • No. of suppliers • No. of articles • Service level to production (%) • Supplier lead - times (days) • Volume contractual coverage (%) • Supply overhead costs (MSEK) 86 78 50 100 10 5 500 17 000 95 35 75 8 98 95 40 98 30 3 500 14 000 97 25 +10 10 99 97 35 50 99.8 99 30 70 99.999 99.9 15 90 1 800 12 000 98 22 11 1 000 10 000 99 18 12 500 7 000 100 15 99 12 Present situation Q3 2008 Q4 2008 2009 Vision
  18. 18. Agenda Modern purchasing roles 09-06-06 Todays purchasing challenges 2 Modern purchasing roles 3 Introduction to EFFSO 1
  19. 19. A broad variety of purchasing roles and positions Modern purchasing roles 09-06-06 <ul><li>Purchaser </li></ul><ul><li>Strategic Purchaser </li></ul><ul><li>Category Manager </li></ul><ul><li>Commodity Manager </li></ul><ul><li>Purchasing Process Specialist </li></ul><ul><li>Purchasing Navigator </li></ul><ul><li>Category Leader </li></ul><ul><li>Lead Buyer </li></ul><ul><li>Tactical Purchaser </li></ul><ul><li>Contract Manager </li></ul><ul><li>Vendor Manager </li></ul><ul><li>Sourcing manager </li></ul><ul><li>Sourcing Specialist </li></ul><ul><li>Chief Purchasing Officer </li></ul><ul><li>Purchasing Director </li></ul><ul><li>Purchasing Manager </li></ul><ul><li>Supplier Relationship Manager </li></ul><ul><li>e-sourcing specialist </li></ul><ul><li>Supplier Quality Engineer </li></ul><ul><li>Sourcing Consultant </li></ul><ul><li>Supply Chain Manager </li></ul><ul><li>Supplier Process Developer </li></ul>
  20. 20. Modern purchasing roles require Modern purchasing roles 09-06-06 &
  21. 21. Modern purchasing roles 09-06-06 It’s a cross-functional team work!
  22. 22. An enormous amount of challenges and management attention! Modern purchasing roles 09-06-06 <ul><li>Still many structures and processes to be developed </li></ul><ul><li>Great possibilities of working internationally </li></ul><ul><li>Room for any set of skills, analysis, communication, process development, etc. </li></ul><ul><li>Demand for Talents is constantly growing! </li></ul><ul><li>Your possibility of influencing the business is extremely high </li></ul><ul><li>Mostly you work cross-functionally and gain insight in every part of the company </li></ul><ul><li>Wages are rapidly rising!! </li></ul><ul><li>It’s FUN! </li></ul>
  23. 23. Modern purchasing roles 09-06-06

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