PURCHASING
ASSESSMENT FOR
INDIVIDUAL AND
ORGANIZATION
BILL KOHNEN

DECEMBER 2013

Time to Celebrate or Plan Change in
2014...
Is it time to Celebrate?
 How

does your
Purchasing
Department Compare?
 More Importantly how
are things going for
YOU p...
Purchasing Assessment
For Individuals
 Review 10 Critical Areas
 Rank 1 to 10
 Guidance given for Low
Mid Range and Hig...
Purchasing Individual
Assessment
Rank

Area

1

Travel to interesting places with good travel policy No

5
Some travel wit...
Individual Assessment Results
Individual Results

Above 90 Dream Job

40 to 70 Normal
20 to 40 New Job?
0 to 20

Change

S...
Purchasing Organization
Assessment
RANK

Area
1

5

10

Spend Categorized

Not Sure what this means

Focus on few perceive...
Purchasing Organization Assessment
Results
Organizational Result

Above 90 World Class
120

Great

40 to 70

Normal

20 to...
Combining Assessments for
Action
In some cases
requires very
personalized
consideration
Take Action if needed
Celebrate no...
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Purchasing Professionals - Time to Celebrate or Plan Change in 2014?

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Purchasing Assessment tools For Individuals and Organizations with benchmark scoring. Particularly designed for individual use to provide framework for professional development in 2014 and beyond. Also can be used by Purchasing executives for organizational review and resource planning.

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Purchasing Professionals - Time to Celebrate or Plan Change in 2014?

  1. 1. PURCHASING ASSESSMENT FOR INDIVIDUAL AND ORGANIZATION BILL KOHNEN DECEMBER 2013 Time to Celebrate or Plan Change in 2014?
  2. 2. Is it time to Celebrate?  How does your Purchasing Department Compare?  More Importantly how are things going for YOU professionally and should you make a change?
  3. 3. Purchasing Assessment For Individuals  Review 10 Critical Areas  Rank 1 to 10  Guidance given for Low Mid Range and High Scores  Multiply total by 10  Compare total score to scale For Organization  Review 10 Critical Areas  Rank 1 to 10  Guidance given for Low Mid Range and High Scores  Multiply total by 10  Compare total score to scale Both Assessment Tools developed based on proprietary Purchasing benchmarks including objective and subjective inputs and multiple direct interviews.
  4. 4. Purchasing Individual Assessment Rank Area 1 Travel to interesting places with good travel policy No 5 Some travel with stringent policiy 10 High impact and intersting travel with travel policy supportive of you Seminars and Training Not encouraged When budget availible and limited scope and out of pocket Viewed as vital to continued improvement and development. Minimum one seminar and one training annualy. Global scope and locations preferred. Raise and Bonus No Raise and Bonus Better than Last year Recognition by Executives outside of purchasing No Nice work environment free coffee and sodas No Corporte Cube with Free Coffee Innovative Workspace with food and refreshments to make day nice Occasional acceptable entertainment from supplier No Lunch, Golf or Game ticket, candy at Christmas Offsite working seminars at interesting places, Attend Supplier Sponsored Charity Events Boss takes team to lunch or dinner sometimes Never Corporate Lunch at Christmas Sincere both at work and also when traveling Good Purchasing system and resources like computers, smartphone and company credit card Manual and you Basic resources SAP or Oracle with Dell provide everything Computer and reimbursed for cell phone Flexible work hours when needed Clock in and out Basically yes but not consistant in organization and required to us vaction or make up hours Yes as focus is on results and team and not rewarding just showing up Good Coworkers Rack and Stack Competitve work enviornment Friendly work Enviorment Coworkers that have diversity of skills and talents that work together to improve and exceed goals Small Raise Ocassional Recognition from Functional Executives C Staff Level Innovattive use of traditional ERP combined with best in class cloud based Purchsing tools. Computers and Smart phones with gloabal reach provided for and paid directly by company
  5. 5. Individual Assessment Results Individual Results Above 90 Dream Job 40 to 70 Normal 20 to 40 New Job? 0 to 20 Change Score 70 to 90 Great 100 90 80 70 60 50 40 30 20 10 0 Dream Job Great place to be opportunities for even bigger things Normal Comment You can do Better Better ways to earn a living
  6. 6. Purchasing Organization Assessment RANK Area 1 5 10 Spend Categorized Not Sure what this means Focus on few perceived critical areas Global data readily availble with spend leaders and teams assinged with subject matter support as needed Total Cost Do not measure Cost Savings Focus Total Cost view with link to revenue as well Internal Measurement None Lagging Measures Leading Measures in place to track path to success Supplier Site Visits Never Based on need and budget. Focused on audits Formalized results driven reviews on a regular cadence Direct materials Order and plan Manually as needed Supplier Management approach with key Suppliers Suppliers dirctly aligned with plans with transparent communicatins Indirect material Just place orders Maanged Locally but primary decisionmaking with requestors Streamlined Globally Integrated webbased tool Training None Relevant training when budget availible Global Program Fully Funded Including Seminars and Experiential OJT Place in Organization No Formal Purchasing Function Reports to Level below Executive Staff CPO Level Supplier Performance Measurement No Only to meet audit requirements Integrated Global System with real-time data focused on few key measures New Product Development Brought in Occasionally Integrated as part of process Not Involved
  7. 7. Purchasing Organization Assessment Results Organizational Result Above 90 World Class 120 Great 40 to 70 Normal 20 to 40 Developing or Stagnant? 0 to 20 Not Relevant 100 80 Score 70 to 90 60 40 20 0 World Class Great Normal Comment Stagnant or Developing Purchasing Not Relevent
  8. 8. Combining Assessments for Action In some cases requires very personalized consideration Take Action if needed Celebrate now or when you get what you want!!! 100 Organization Consider scores together. Requires further self review and adjustment. Maybe temporary issue. Try to fix things in 2014 but start networking. Stay where you are!!! If you like Purchasing find job at a new company. If you like the company move to new department. If you are happy no need to change unless you want growth opportunity Individual 100

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