Simply stated, society is driven by competition, and everyone wants a piece of the pie. Consequently, every time you want a product or a service, you have a choice, a complete range of quality and price. The art of purchasing is choosing the right quality and price to fit your needs. This is over simplification, but if you consider buyers in a country whose manufacturing and importing is controlled by the government. Their jobs are simple because there is little or no choice. They are order placers, not buyers. Therefore, it is correct to assume that the more choices there are the more professional and sophisticated the buyers must be.
The next question must be how does the professional and sophisticated buyer select one product or service among the many that are offered? It is at this point that the difference in purchasing or buying methods becomes apparent. Each industry has its own methods and style. One industry may emphasize product knowledge and another may utilize engineering departments or technical committees. Government agencies stress purchasing procedures. Each industry has its own internal goals, and its purchasing methods must be designed to meet those goals.
In this and the following chapters, we will discuss the peculiar requirements of a variety of industry classifications and how each demands distinct educational and experience backgrounds and in many cases, different personality types. You will find that there are fundamental reasons why each classification employs its own purchasing system and why purchasers in different industries often have unique relationships with management and other departments. Pay particular attention to the personality requirements of each industry, because the more compatible you are, the better your chances are for success.
There is probably no better way to illustrate the diverse nature of the purchasing career field than to actually describe how some purchasing professionals entered the field and how they progressed during their career. Because of the rapid evolution of the purchasing function, few of those profiled on the following pages actually entered the work force intending to make purchasing a life-long career. Typically, most started in entry-level positions in a variety of industries- some out of college, others out of high school or trade schools. Many with high school diplomas or less than four years of college went back to school while working to obtain more general knowledge in business; however, few actually enrolled in courses relating to purchasing simply because these types of courses were not generally available.
Since the purchasing field has been and still is growing rapidly, the demand for skilled purchasing personnel has exceeded the supply, thus creating ample opportunity for advancement. You will notice that some of the profiles reflect how continuous growth has affected the rate of promotions and how the purchasing professionals have been able to grow with their companies.
PURCHASING AGENT FOR A MAJOR HOTEL CHAIN
Christopher Daniels is an excellent example of a purchasing professional who learned the tools of his trade by working his way up from an entry-level position in the hospitality industry. Originally hired as a houseman, within a relatively short time he asked to be transferred into the purchasing department as an assistant purchasing agent. The request was granted, and he began on-the-job training in the buying of cleaning and office supplies. He then became involved with the food and beverage purchasing.
After several years as an assistant, he then accepted a position with another major chain as an executive steward, working closely with the dining and banquet departments. It was a high-volume operation, and he soon accumulated a working knowledge of food and beverage production and service. When the position of purchasing agent for the same hotel became available, he was given the job.
As in most hotel chains, the purchasing of the furnishings and major equipment is the function of the design and engineering departments at the corporate level. Consequently, Daniels's primary buying responsibilities involve the food and beverage service, housekeeping, and office operations. Although the basic purchasing policies are also developed at the corporate level, the very nature of the products purchased at the hotel level requires developing procedures that will meet the needs of each individual hotel.
From Daniels's viewpoint, the feedback from the people who use the products he buys is very important. Although he is very knowledgeable about materials, concentrations, and the physical or chemical composition of the products, the users must also be able to understand the proper application of the product. Because most supply items are manufactured and, therefore, are reasonably consistent in quality, only a reasonable amount of product knowledge and evaluation is necessary. The purchasing of food products, however, requires extensive product knowledge and a complete understanding of market forces. Market conditions and availability of products can change overnight, forcing changes in menus or the substitution of one product for another.
Food products also require continuous receiving inspections and vendor evaluations to ensure that they meet quality specifications. Daniels is very aware of the fact that poor quality can dramatically increase food costs and customer complaints.
Although most of the knowledge required in his job can only be gained through experience, Daniels now feels that it is time to go back to school to gain more knowledge in management and supervision. When asked to identify the most important skill needed in hotel purchasing, Daniels quickly replied, 'The ability to communicate under all types of circumstances and still remain even tempered and outgoing. I spend most of my working day dealing with various departments of the hotel, the guests, and, of course, the vendors. Although I must maintain good working relationships, I must also discipline myself to be very conscious of time."
PURCHASING UNIT SUPERVISOR IN BANKING
The purchasing department of this major banking chain is headed by the manager of purchasing, a position generally considered to be at the vice-president level. Reporting to him are three unit supervisors specializing in the following areas: office furniture, office products, and warehousing/distribution. These three positions buy, warehouse, and distribute products for over six hundred branch banks and two corporate headquarters. Mark Held is the purchasing unit supervisor in charge of purchasing office products of seven to eight thousand different types. His total purchase volume adds up to seven to ten million dollars annually.
Held currently has an associate's degree and is working towards his bachelor's. Like many purchasing officials, his first full-time job was related to the purchasing field but did not actually involve buying. As an inventory control clerk in a wood products factory, his primary responsibility involved control of the raw lumber stock. He then went into retail management but returned to the purchasing field when he became a private label buyer. His next position was as a systems buyer, purchasing point-of-sale equipment for use in retailing. This job gave him the opportunity to become thoroughly familiar with computer systems and supplies, a knowledge that would be very valuable in the future. After two years in that position, he took advantage of an opportunity to become a technical products buyer for a large municipal school district. For more than four years he was involved with buying computer systems and gained considerable experience in writing technical specifications and proposals. A year ago he moved to the banking industry and, because of his knowledge of computerized systems and supply requirements, was placed in charge of purchasing operational products and supervising a senior buyer and a buyer.
In his opinion, the most valuable part of his previous experience was in retail management because he gained a thorough understanding of business organization and procedures, a knowledge that is essential when buying the forms &at drive the communications systems between the many departments of a full service bank.
His experience in technical specification and proposal writing has also been very valuable because he has learned the art of organizing business communications in a clear and logical format. According to Held, the ideal combination of education, skills, and experience for someone in his position would be a degree in a business-related field; highly developed skills in management, public, and interpersonal relations; a math background that would foster analytical abilities; and enough business experience to fully understand the broad picture of business operations.
He also lists four critical needs for an effective purchasing official in the banking industry:
- Must have excellent communication and negotiating skills.
- Must establish goals, a practice heavily emphasized in the banking industry.
- Must be service oriented. It is very important to deliver the right product to the user.
- Must have a highly developed sense of ethical behavior and unquestionable integrity.
Ray Gunther, an eighteen-year veteran in the purchasing field, is an excellent example of a professional who has succeeded in one of the most hectic of all types of buying- the perishable foods arena.
Working part time as a grocery clerk while finishing his formal schooling, Gunther decided to stay in retailing and started as an assistant grocery store manager. He soon was promoted to manager and then joined a large grocery chain as a pricing coordinator. His next move was to the warehousing and distribution function, and he was soon placed in a training program for grocery buyers. His next promotion was to director of grocery merchandising and then to vice-president of merchandising. Four years ago, he joined his present company as corporate manager of dairy merchandising and was then promoted to general merchandising manager. Currently, he supervises seven grocery buyers, five meat buyers, one dairy buyer, two frozen food buyers, five produce buyers, four people in the advertising department, and twelve print shop employees.
Gunther has a bachelor's degree in economics, but his formal education has been supplemented by countless training courses and seminars, including the three weeks' training per year sponsored by his company. When asked what part of his education has been most valuable in his career, Gunther identified math and computer science as having the greatest influence.
In terms of valuable work experience, he also thought that his involvement with the retail end of the grocery business gave him valuable insight into marketing practices. Since consume perceptions and demands drive the retail business, this experience enables Gunther to help the retailers in merchandising the products.
Gunther also believes that an effective buyer in his area must have extensive product knowledge, information that cannot be learned in school; therefore, new employees are hired on the premise that they will possess the foundation or the capacity to become effective buyers. That necessary foundation, in Gunther's opinion, is a bachelor's degree in business or marketing and at least one year's experience in retailing or selling to retailers.
The newly hired buyer trainee is assigned to a division team and begins an intensive on-the-job training program. During the training, the newly hired employees are also evaluated in terms of certain characteristics that Gunther feels are necessary to be effective buyers in this industry. Ultimately Gunther is looking for someone who is self-confident and amiable but demanding. This person also must have a very high level of integrity and professionalism and maintain an excellent business appearance.
All buyers are expected to be quality conscious and use the end-value approach to their purchasing activities. Since the food product marketplace is so unstable and unpredictable, attention must be constantly given to such factors as weather conditions, strikes, transportation problems and any other factor that may affect the supply and demand cycle.
ASSISTANT MATERIALS MANAGER IN MEDICAL SERVICES
After one year of college, family circumstances forced Assistant Materials Manager Jay Selby to disrupt his formal education. His first position was in a hospital store as a store clerk. He was promoted to store manager, then assistant purchasing agent, and then to purchasing agent within a five-year period of time. He then accepted a senior buyer position in another hospital before moving to his present position in a large hospital located in a southwestern U.S. city.
Selby reports directly to the head of purchasing of a hospital with several operating locations. His responsibilities include the procurement of all support materials, equipment, and furniture for all locations with the exception of pharmaceuticals and dietary. Under the present system, these two departments order directly from the suppliers.
The requirements of a full-service hospital are so diverse and so specialized that Selby utilizes product evaluation committees to critique many of the products and equipment being considered for use. Each committee has a member of the materials management staff as an advisor to ensure that purchasing policy and standards are applied in each evaluation. These committees and medical staff specialists also assist in the writing of specifications and proposals particularly for highly complex medical equipment.
Continuous cooperation with the medical and technical departments is critical because much of the equipment and materials are used in life or death situations. In Selby's opinion, a hospital purchasing agent must have extensive product knowledge; however, because of the constant evolution of the medical field, only close cooperation with the technical departments can ensure that the proper products are procured.
The ideal educational background for a successful purchasing agent in the medical field is at least a bachelor's degree in a business-related major; however, there is no substitute for experience. As in many other fields, product knowledge can only be gained through experience on the job. Although Selby's experience can be supplemented to the numerous seminars and workshops that he attends, most of his knowledge is gained from the day-by-day contacts with the using departments and the product salespeople.
According to Selby, purchasing agents in the medical services area must be highly structured and mission oriented. The ability to be a team player is critical because of the very nature of the medical profession. It is a stressful profession because the allowance or the margin for error is so slight. The availability of the right product or equipment at the right time can be the difference between a person's life and death.
Selby also notes that there is an unusually high requirement for confidentiality. Consequently, a strong sense of ethics is mandatory.
MANAGER PURCHASING/MATERIALS CONTROL IN UTILITIES
After graduating from college with a BA in marketing, James Chapman, Jr., entered a management training program with a national department store chain and, within a year, became a department manager. Retailing, however, was not as attractive a field as he had anticipated, so, seeking a change, he accepted a position as an expediter with the local utilities company. Approximately 80 percent of his time was spent following up orders and checking the status of deliveries, which gave him the opportunity to gain considerable insight into the general gas and electric marketplace. He soon was promoted to a buyer position and within a few years, he became a purchasing supervisor, which involved about 50 percent buying and 50 percent supervising other buyers. The utility company was expanding rapidly, and Chapman had the opportunity to become involved in the procurement of a wide range of products including office supplies, equipment, wire and cable, piping, steel, substation supplies, and communications equipment. The growth of the company provided an excellent training ground, and Chapman soon became familiar with most aspects of operating a utility company.
In 1982, he had the opportunity to join a utility company in a neighboring city as manager of purchasing. Soon after accepting the new position, he established a new code of ethics and developed a program of standard purchasing procedures. He also established a new traffic program directly linked to the expediting department. Several other departments were then placed under his supervision, including inventory control, reclamation of hazardous waste, and obsolete equipment disposal. Current plans call for the further addition of an inventory audit department and three systems analysts to aid in program development.
Currently he directs a staff of twenty in procurement, five in reclamation, ten in inventory control, and five in traffic/expediting. His purchasing volume will probably exceed 250 million dollars during 1989, and sales of obsolete equipment will top three million dollars.
Chapman described the best educational and experience back ground for someone in his position:
Certainly a college degree and I found a major in marketing to be very useful. I would also strongly recommend an MBA. A certified purchasing management designation should also be required. As far as experience is concerned, I would recommend ten to twelve years of purchasing and inventory control and considerable involvement with technical and legal issues. An individual should certainly have enough product knowledge to be able to make valid judgments, but most utilities have engineering departments that develop specifications and proposals. You do need a working knowledge of the products to be able to communicate with other departments and the suppliers.
Chapman then added his opinion of an effective purchasing professional in his industry:
Utilities is a demanding environment. The pro has to juggle a number of projects at the same time, constantly reprioritizing. It is more of a fast-paced production fiction than most people think it is. The job requires a good analytical mind-the person must be self-starting and self-motivated, reasonably extroverted, and scenario oriented. By scenario oriented, I mean that the person must be able to conceptualize the impact of several what-if situations before making a final judgment. They cannot be myopic or tunnel visioned. The utility industry survives on strategic long-term planning to cope with growth and the pro has to learn to think the same way.
PROCUREMENT SPECIALIST IN ELECTRONICS
Steve Pottinger has an unusual alternative to consider when he investigates sources for electronic components. His company, a well-known semiconductor plant, has the capacity to manufacture many of the basic items needed. Consequently, many of his decisions are not where to buy but whether to make or buy. As a procurement specialist, he is constantly interacting with management in the development of potential foreign or offshore sources of contract manufacturing. He is also a member of several teams and committees including the implementation task force, various cost reduction teams, and the committee on operating policy and procedures,
Although he has been in purchasing for seventeen years, Pottinger started out as a computer operator, a job he held for three years. He then became a computer programmer and a software analyst. His introduction to the purchasing field occurred when he became an expediter and contract administrator for the same company. After a move to the western part of the country, he joined the buying staff of an international truck rental company and soon progressed to senior buyer and then to purchasing manager. His next position was purchasing manager for a commercial banking system. With a broad background in purchasing, he decided to become a consultant and set up the entire materials management system for an aircraft manufacturer in the process of relocating its primary manufacturing facility. Upon the completion of that project, he joined his current employer.
Pottinger has a bachelor's degree in materials management and is planning to go for his MBA. Because he uses so many different methods in procuring the products required by the company, he feels that the most essential knowledge involves the various purchasing systems and the administration of manufacturing contracts. Some product knowledge is necessary to know what questions to ask; however, most of the specifications are developed by engineering or by the customer.
He has found his computer background and experience to be very valuable, and, obviously, some knowledge of contract law is essential. However, equally important is the development of the proper instincts and attitudes, attributes that are essential when interacting with management, suppliers, or customers.
When asked what the ideal educational background would be for someone wanting to enter his field, Pottinger replied: "The ideal combination would be engineering, communications, and law, a difficult combination to find under our current educational system. There is a strong technical orientation in our business, and we must depend upon teamwork and good communications to operate effectively."
DIRECTOR, CENTRAL PURCHASING AGENCY IN EDUCATION
Mary Silva is another example of someone who entered the purchasing field through the back door. Upon graduating with a bachelor's degree in industrial psychology in the fifties, Silva accepted a position as business advisor to fraternities, sororities, and other student groups at a major east university. As the number of student organizations increased, it became obvious that the groups could save considerable money by centralizing their food, equipment, and other purchases. Consequently, Silva set up a system by which all of the purchases could be consolidated and yet delivery would still be made to each of the dozen organizations that were part of the original group. The system seemed simple-orders were collected and then placed with the supplier with the lowest price. When Silva received phone calls from a dozen irate chef-managers within thirty minutes after the first deliveries, she then decided that, in this field of purchasing, product knowledge was essential regardless of what system was used. She thus began a five-year process of self-education. A test kitchen was established and products were evaluated by a committee of cooks and managers.
Specifications for major equipment were reviewed by engineering and service personnel, and quality standards for other products were established with the help of other university departments. She visited process plants and equipment manufacturing facilities and even helped break down sides of beef before she felt that she knew enough about the thousands of products purchased each year to be an effective buyer.
As the number of organizations participating in the centralized purchasing program approached sixty, Silva developed a central warehousing and distribution program that reduced the cost of nonperishables and equipment items.
Ultimately, the centralized concept was expanded to include accounting, personnel, maintenance, working capital investments, employee benefits, and insurance and accounts receivable/payable. Although she delegated the purchasing responsibility to a purchasing manager and staff, Silva retained a continued interest in the field.
When asked to describe the traits and knowledge necessary to be successful in her field, she replied:
First, curiosity- you never can assume that you know all there is to know. Products and services evolve continuously, and you must remain up to date. Second, research and follow-through. You may know the product, but you also must know its use and the conditions of its use. For example, if a piece of equipment is intended to last fifteen years, and it only lasts five, then we have mistaken someplace, either in our original specifications or in our projections as to the conditions of use. Third- the ability to analyze in terms of both concepts and mechanical relationships. Is a certain product the best for the intended use? Four-the ability to communicate, negotiate, and resolve conflict. Many times you are the link between the supplier and the user. It's a position that you cannot and should not avoid, but it requires tact, patience, understanding, and objectivity.
In Silva's opinion, the best possible combination of education and experience would be at least a bachelor's-level degree, preferably in materials management but including business law and three to five years' experience as an assistant buyer.
MANAGER OF PURCHASING IN MANUFACTURING
A twenty-seven-year veteran in the purchasing field, Robert Lutz is one of the few purchasing professionals interviewed who has been in the field since the beginning of his career. After college, he entered the United States Air Force officer training school and, upon receiving his commission, was assigned to the aerospace program as a contract negotiator. His job involved the negotiations for research and development contracts for the Gemini program and also involved research on the space backpack project. Since contracting for research and development is limited almost entirely to government procurement, this experience provided a unique approach to the skill or art of negotiating and probably was responsible for his decision to stay in the purchasing field after he was discharged from the service.
His first civilian position was as a junior buyer, purchasing electronic components and fabricated parts. He then accepted a position as manager of purchasing and production with a hydraulic press manufacturer, a position he held for five years. He moved on to two purchasing manager positions in progressively larger companies before joining his present company as purchasing manager in 1982.
In his present position, he supervises three buyers and three clerical personnel and directs the purchasing activities of one of the branches of a major company involved in the manufacture of a diverse range of products. Each of his buyers specializes in a specific category of parts and materials, and, although product knowledge is important, the knowledge of purchasing systems and organizational structure is critical because of the size of the plant and the relationships with other branches of the company.
As in most large basic manufacturing companies, the specifications are developed in engineering and then, in cooperation with purchasing, are translated into purchase requisitions and orders. The buyers then begin the negotiations necessary to obtain the best products and the right price at the right time.
Lutz's primary responsibilities involve the constant review of corporate purchasing policies, needs assessments, staff training, systems design, and planning, which includes expediting, cost reporting and quality assurance, supplier/vendor evaluation, and cost/value analysis.
His educational background includes a Bachelor of Science degree, graduate-level courses, and numerous seminars sponsored by the National Association of Purchasing Management. Al though his major was marketing, he feels that the basic business courses were the most help in his career. He also feels that the negotiating experience gained in the air force plus his independent studies in negotiating have been extremely valuable.
According to Lutz, the ideal combination of education and experience for someone managing the purchasing function in a manufacturing environment is a bachelor's degree in business with a concentration in materials management and a diverse working background that should include both large- and small-company experience. Working for a small company gives a person the opportunity to become familiar with all aspects of company operations, and large-company experience provides a more specialized training in formal purchasing systems.
An ideal character and attitude profile could be described as inquisitive, outgoing, well organized, good written and oral communications skills and above all, a good listener since much essential information is obtained from sales personnel.
Lutz also mentioned that there were three little-known requirements for success in the purchasing field: first, the need to take action, that is, the need to continuously seek out alternatives or options, never being satisfied that the current method is the only method; second, understanding the value of the function of purchasing in the organizational structure; third, the ability to negotiate win-win contracts with suppliers.
At this point in his career, Lutz is not looking at his position as a stepping-stone to a general management position. His real expertise lies in purchasing, and he is totally committed to the field as a lifetime career.
DIRECTOR OF PURCHASING FOR THE GOVERNMENT
Sandy Spain is the director of purchasing for a southwestern U.S. city internationally known as a tourist mecca. Although she has been in purchasing only five years, she has much experience in government operations, particularly in the financial sector. Her first significant government position was as a planning and zoning administrator. After approximately ten years in that position, she became manager of customer services, a job involving the billing and collection of utilities, sales and business taxes. Her next move was to the position of assistant to the city treasurer, where she was heavily involved in numerous financial projects. In 1984, she was asked to take the position of director of purchasing for the city. Her primary qualification for the position was her in-depth knowledge of how government really works and her service-oriented attitude. She fully understands that the taxpayers are the source of the funds that she spends and the purchasing systems must be designed to protect their rights.
Currently her responsibilities include the direction of thirty-one employees in purchasing, central receiving and stores, inventory control, printing and binding, and the mail room. She also is in charge of a portion of accounts payable since her department processes all the invoices and statements for payment by central accounting. Her purchasing department is segmented in three phases: purchasing administration, bid and contract specialists, and buyers of products and services (under bid limits).
As in most government buying agencies, Spain's purchasing methods are highly visible and public. Many of her suppliers are also taxpayers and therefore, her purchasing systems must be open and fair to all who wish to sell to the city. All purchases above a predetermined dollar limit are made according to formal bidding procedures, with the exception of those products obtained through a cooperative purchasing agreement with the state. Formal bidding procedures require that the development of specifications be an exacting process and, again, must be designed to allow a variety of suppliers to submit bids.
Vendor evaluation is an important function of her department and is done through a combination of customer feedback and a computer program that tracks delivery and quality performance. She also meets regularly with the various city departments to critique both her department's performance and the supplier of both products and services.
Spain's educational background includes two years of college and numerous seminars on government operations and purchasing. Although she feels that a four-year degree in business would provide a good basic foundation, she does believe that a concentration in purchasing would not be as valuable in government as it might be in other applications because most schools tend to lean toward manufacturing as a basis for teaching purchasing techniques. Government purchasing requires considerable product knowledge usually obtained by experience, but, unlike the private sector, there is the additional requirement of knowing formal bidding systems and how to effectively build positive relationships with both the citizens and the suppliers.
According to Spain, one of the most interesting aspects of municipal purchasing is the variety of products and services. Almost every day brings a different challenge, particularly when a product or service must be customized to fill a unique need. Requirements range from building construction to pencils and from vehicles to mud pits for park activities, all requiring much coordination with other city departments.
Spain's example of an ideal government purchasing manager is someone who is analytical and customer service oriented with excellent math and evaluation skills and thoroughly adept in the art of negotiating. Since this position is constantly under the scrutiny of the public, the highest ethical standards are a must. A government purchasing manager must also be detail minded and be able to operate effectively within a relatively rigid organizational structure.
Her considerable experience in working within a government structure has given her a thorough understanding of what the city demands of her department. She is, at this point, considering making purchasing management a career.
RETAIL DIVISIONAL MERCHANDISING MANAGER
As divisional merchandising manager, Steven Dye supervises four buyers and four assistant buyers in the textile division of a major nationwide department store chain. His primary responsibility involves bath, bedding, and curtain and Papery products. Also, unlike managers in most textile departments, he is responsible for buying lamp and luggage products. A veteran of fifteen years in purchasing, most of his experience has been in retail sales and merchandising. After graduating from college with a degree in marketing, he entered a training program with another major chain and has had a series of positions including assistant sales manager, assistant buyer, buyer, assistant store manager, and regional merchandising manager at the corporate level.
As in most large retailing chains, the training program and the executive development track have exposed him to both sides of department store operations-sales and merchandising giving him the broad overview of retailing. The opportunity to experience all aspects of operations has enabled Dye to function as a member of a complex, fast-paced system of buying and marketing consumer products. He and his team are responsible for the selection, procurement, and merchandising of a broad range of products that appeal to both the high and low end of the markets.
Dye's buyers must be very sensitive to consumer preferences and trends because they must determine the market, shop the sources, price the products, and then promote them. Understandably, they are very brand conscious because most retailers will identify with certain labels or manufacturers which, in turn, are targeted toward the upper or lower price markets.
Usually Dye uses an open-end contract to buy most of the products. The various branches are then supplied with their needs at a price guaranteed for the length of die contract, which is usually written for a specific period of time or for the season. Since each division will buy for stores in several states, the buyers must also accommodate customer needs under a variety of climatic conditions and local trends.
Dye has found his background in all aspects of store operations to be most valuable in his career. Although he now has obtained his MBA, he feels that it is most important to be multi-disciplined and to pay particular attention to the basics of retailing. The knowledge gained during his MBA program has been very valuable in the strategic planning aspects of his current position. Extensive product knowledge is also a must in department store operations since buying for multilevel price markets requires an acute sense of perceived value and cost. The buyers are constantly making rapid value comparison judgments.
The best background for someone entering this field is a four-year degree in business and marketing, demonstrated achievement in a related field, and some type of retail or customer service experience.
As far as character and personality traits are concerned, Dye describes the ideal retailing professional as emotionally stable, realistic, having common sense, a good listener, even tempered, self-disciplined, and self-motivated.
DIRECTOR OF CONTRACTING IN MANUFACTURING
John Mihelich is a classic example of someone who made it to the executive level the hard way. He started working in the sheet metal shop of a major aircraft and aerospace manufacturer and then spent time in the machine shop, processing, and then in warehousing as an expediter. During this time, he was attending college nights and received his BS degree and his MBA. His career began to materialize, and he progressed rapidly through a series of positions involving the administration of programs and projects relating to the space shuttle and the BIB bomber. Some of his job titles were senior operations administrator, program/project management representative, senior major sub contract administrator, section manager-material, group manager-material. Most of these positions involved the subcontracting for aircraft systems and complex electromechanical equipment. Three years ago he accepted a position with a telecommunications company as director of contracting.
His current duties involve the development of contracts for all the products required by the company with an annual purchasing volume in excess of one billion dollars.
At this point, he is returning to his former employer after accepting a position as purchasing manager with the opportunity to manage the entire materials organization.
During most of his career, he has been involved in contract administration, positions that require highly developed negotiating skills and a level of product knowledge that enables him to understand and communicate basic configurations and to negotiate contract modifications and changes. He has found that his manufacturing and shop experience has given him a sense of quality values and an understanding of the critical nature of timing that has been a great help in his career. He also feels that his involvement in the MBA program gave him the opportunity to learn from facilitators who actually work in related industries, again providing him with a better overview of operations.
In his opinion, the best educational and experience background for someone in his position is a BS degree, eventually an MBA, and experience in manufacturing, project and program management, and a solid background in negotiating. The person also must be consistent, a hard driver, fair in pursuing win-win relationships both internally and externally, and a good planner, implementer, and motivator. Procurement personnel in manufacturing must be multifaceted with knowledge of engineering, quality control, production/operations, and price analysis.
