In the first half of a year, Sandy Hearn saved her company $1.3 million.
She is the purchasing manager for a pager company with 900 employees across
the United States. Many years ago, the company didn't have a
purchasing department. Hearn was hired to set one up. "I set up the policy
and procedure," she says.
An important step was to centralize the company's buying process. All offices
must submit their purchase requests to her department, which can then secure
a lower price because the supplier has a larger, guaranteed market. "Service
and quality are important too," adds Hearn. "It's not just price."
Hearn had two majors in college: interior design and marketing. Her first
job was with an architectural company as an interior designer.
"One of the things they asked me to do was buy for the [interior design]
department," she remembers. "I loved it and changed careers. It's so diverse.
You learn a little about everything -- unless you're in a company where you're
dealing with a specific commodity, you never get to know everything. There's
a continuing learning process."
In the course of a day, Hearn will shop around for everything from paper
clips to photocopiers. That doesn't mean hitting the mall. It means contacting
or meeting with suppliers to find out what they're offering at what price.
"In private industry, you can go behind closed doors, ask for the moon and
leave with the stars," she says.
Hearn loves being able to sit at a table and hammer out an agreement. It's
quite different than the work she did for 12 years as a purchasing agent for
various government agencies. Government agencies are subject to strict laws
about how they spend taxpayer dollars. All purchases over a certain amount
have to go to public tender, and through a complicated bidding process.
Roy Thomas knows all about the importance of contracts. Thomas is a municipal
purchasing manager in Mohave County, Arizona. "Anything that the county uses,
my department buys it," he explains. That's everything from office supplies
to heavy equipment and the services of architects and engineers.
"It's a challenge," he admits. "Every day is a little different. Certainly
a lot of things are purchased that are repetitive, but occasionally you get
a chance to do something quite different." For example, Thomas once negotiated
a contract for medical services to a local jail.
Thomas learned his profession on the job. "As a buyer, people generally
work their way up," he says. "No one starts out as a manager."
Thomas says most government agencies will have junior buyers work under
senior buyers to learn and gain experience. "They get more experience, then
they're qualified for [the job]."
Politics can add a whole new dimension to purchasing. A few years ago,
the county decided to contract out its data processing department. Thomas
had 10 days to write the specifications for the job and get them on the street.
Then he had two days to write up a contract.
"That was stressful because of all the legal questions that had to be answered,"
he remembers. Thomas says it should have taken six months to make that decision,
but he had to meet a political agenda. "It was one of those political things
you can't talk about."
Hearn isn't immune from politics either. Her managers don't approve every
deal she negotiates. It's frustrating when Hearn has worked long and hard
to secure a deal, but she says it's important not to take it personally. "I
figure they have their reasons," she says.
To protect her department over the long term, Hearn makes a point of writing
a cost-saving report every quarter. That's how she knows exactly how much
money she saved the company in the first half of the year. "When we save money,
we document it."
Purchasing is also a good way to meet all the people in your company. "In
purchasing, you deal with everyone," Hearn explains. "From the president right
down to the lowest person. You interface with them all. If you're a people
person, it's perfect."
Hearn says purchasing demands a well-rounded person. It forces you to think
in a certain way. "It's very detailed," she says.
You also have to know how to negotiate effectively. "When to stand solid,
when to make an offer, your body language -- it's important."