Reengineering Purchasing: The Journey from Bureaucrat to Explorer
By Dr. Tom DePaoli Anyone who thinks that reengineering purchasing is not the most radical and corporate changing process that a company can undertake is greatly mistaken. Reengineering can not be done in a piecemeal half-hearted manner. It requires the total changing of all aspects of purchasing. It is important to change everything about the […]
Reengineering Purchasing into Supply Management
Reengineering or Transforming Purchasing into Supply Management By Dr. Tom DePaoli Introduction The details of an actual case of a reengineering or transformation of a purchasing organization into supply management can be found in my two books available on Amazon. Common Sense Purchasing and Common Sense Supply Management Anyone who thinks that reengineering or transforming purchasing is not […]
Pay By Market Basket Focus Areas
Pay Procurement and Supply Chain Professionals by Multiple Market Basket Focus Areas The Market Basket Focus Areas Pay Concept By Dr. Tom DePaoli Jack Welch once noted that the only two departments that drive revenue directly to the bottom line are sales and procurement. He noted that the other departments were basically overhead. I would […]
One Stop Service Shopping at a University
Ours was a traditional university with most of the offices scattered in the three story administration building. Our student customers spent much lost time trying to find the correct offices for their needs like parking permits, financial aid etc. A small Kaizen team was formed to come up with ideas to alleviate this student confusion. […]
How to Convince Top Executives of the Value of Purchasing
How to Sell Procurement to Your Organization and Top Executives By Dr. Tom DePaoli Procurement has continuously demonstrated their impact to the bottom line of an organization. It has been well documented and universality recognized. Then why do many companies refuse to take advantage of this cost saving resource? Why do executives still remain […]
How Can a Purchasing Professional Get “Street Cred” in Their Company?
By Dr. Tom DePaoli Most purchasing professionals have skills in purchasing, negotiations, and the materials or services that they buy. Many have certifications. They have dutifully enhanced their skills in all these areas and pursue continuing education. Unfortunately what many organizations value are operations skills, or what they know about the core business and the […]
Effective Cost Reduction–A Desktop Guide
Dr. Tom DePaoli Cooperative cost reduction efforts with suppliers demand a great deal of discipline and common sense. Never underestimate the amount of time and energy involved in significant cost reduction efforts. Pareto’s 80/20 rule is your starting point. Concentrate on your top 10 suppliers which for most companies are responsible for 40-80% of all […]
De-Mystifying Lean Six Sigma for Purchasing Professionals
By Dr. Tom DePaoli Many supply chain and purchasing professionals are intimidated by Lean Six Sigma (LSS) and its proponents. Relax. It is just a disciplined approach to problem solving. LSS uses many tools that have been around for years; in many cases the tools have just been cleverly repackaged by consultants. Decisions are data-based, disciplined […]
Build Relationships with Suppliers For Dramatic Results
By Dr. Tom DePaoli Most purchasing professionals are familiar with the usual quantifiable supplier metrics and measures. Sophisticated computerized tracking programs exist to measure these traditional performance factors. There are nontraditional supplier metrics/activities that can help not only to rate a supplier, but also to build much stronger supplier relationships. First, you can learn a […]
Benchmarking Via the Shopping-Cart or As Is to To Be
Many organizations brag about their benchmarking efforts and how good they are at it. I once worked for a large paper company, and a lot of our spending was for packaging materials involved in the making of toilet tissue and paper towels. I was involved in materials management, plant scheduling, and packaging engineering at the […]