PURCHASING IN THE COMPUTER/ELECTRONICS INDUSTRY

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THE NATURE OF THE WORK

The computer and electronics industry is unlike most of the other industries for two very important reasons. First, most of its competition is foreign; this complicates the needs assessment process and the competitive cost process in product development. Second, this industry is one of the few that often has the capability of manufacturing many of the components that it requires. Consequently, the decision to make or buy must be made early in the procurement process, and the necessity to project production costs adds another challenging dimension to the purchasing department's responsibilities.

Another complicating factor, although not unique to the computer/electronics industry, is many of the parts, components, and materials are purchased from foreign, or off-shore, sources. This means that an already very complicated procurement process is further complicated by differences in time, language, and international law. Since this industry, as most of the others, is concerned with the cost of materials management, the need for timely deliveries is extremely important; this also is often complicated by transportation or shipping problems due to distance and the need to use a variety of transportation methods in obtaining each product. The variety of transportation can also make the expediter's job a nightmare when he or she is trying to determine the status of a shipment.



The emphasis in the purchasing system in a computer/ electronics environment is on the ability to negotiate. Although some product knowledge is useful in knowing the right questions to ask, realistically, it would be impossible to know everything about every product or component involved. Specifications are usually developed by engineering or, more often, the customer. Military and international markets are primary customers, and these users usually have very exact specifications and requirements. Exceptions to this rule are those manufacturers producing consumer products; however, their numbers have fallen due to foreign competition.

Purchasing professionals in this industry spend much of their time in meetings with management and other departments. The need to coordinate all of the company's primary activities almost always involves purchasing because of its input regarding costs, availability, and sources. The ability to relate to top management, other departments, and suppliers, sometimes foreign, is absolutely essential. Buying decisions are not as much a matter of numbers as in some industries simply because of the intangibles: timing, reliability of contractors, communications, and international politics.

ENTRY REQUIREMENTS AND QUALBFICATIONS

Entry into the computer/electronics field is usually gained through experience or buyer trainee positions, although some buyers enter through complex clerical or computer programming jobs. Technical or computer experience is very helpful in finding that first job because in most cases you will be working in a highly complex manufacturing environment. The ideal educational back ground is a degree in engineering with heavy emphasis in business and business law or a degree in business with emphasis in business or international law. Work experience should include some computer or electronic applications because familiarity with the basic technical concepts is required. Also important is a demonstrated ability to work with various levels of people in a business/technical relationship.

Although some specific product knowledge is helpful, the true expertise required is in the procurement systems themselves. There is a divided opinion concerning the value of a college major in materials management. Some feel that companies' systems are so specialized, applying to only one segment of the computer/electronics industry, that a person can learn them only through on-the-job training. Others, however, are of the opinion that formal coursework, particularly at the graduate level, significantly increases advancement potential. One person noted that the formal courses in the PTO (purchasing, transportation and operations) major gave him a better understanding of some of the options available when designing or administrating procurement systems.

This industry will have high expectations for you. In addition to technical expertise and the knowledge of procurement procedures, the industry wants excellent negotiating skills and instincts. Since this industry depends on operating committees and task forces for many of its policies and procedures, the ability to work as part of several teams concurrently is important. The fact that many products are manufactured according to customer specifications results in the need to interact with sales and the actual customers perhaps more than in most other industries.

Most purchasing professionals working in this field stress the need for employees that are detail oriented, patient, not easily frustrated, excellent problem solvers, skilled in written and verbal communications, and well organized. In certain segments of this industry, a fluency in a second language is also a definite plus. Obviously, the knowledge of Chinese or Japanese would be very useful, and, because of increasing activity in Mexico, fluency in Spanish is also desirable.

WORKING CONDITIONS

You can expect above average starting salaries and good fringe benefit packages. The working environment is usually excellent with modem facilities. The work group is comprised of technically oriented professionals and you will spend much of your time interacting with various departments and management. The pace is sometimes hectic, and when problems do occur, they tend to be complex simply because the procurement systems are complex.
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