PURCHASING VOLUME AND COMPLEXITY
Purchasing Volume and Complexity: two of the main components in Purchasing.
Purchasing Volume, or how many euros are spent per year, indicates the importance of each commodity in terms of economic results, and consequently the impact of each commodity’s result in total.
Complexity, or how much Purchasing Volume there is per variant, tells us the needed resources to assure the proper management of the commodity.
Expecting to optimize the purchasing result, the ‘high performance’ purchasers are frequently defined as responsible for commodities with high volumes. The ‘low performance’ purchasers are defined as responsible for commodities with low volumes, but in some cases with high complexity.
And sure, excellent purchasers are needed for commodities with high Purchasing Volume, purchasing results are mainly related to them.
But let’s not forget that excellent purchasers are also needed for commodities with low Purchasing Volume but high complexity. They must manage those commodities properly in terms of cost level but also be productive and avoid delivery problems and shortages, a common occurrence with these ‘unfocused’ commodities.
To put it in different terms: consider your Purchasing team like a football team with the goalkeeper, defenders, midfielders and striker. Players for different positions need different profiles, but all of them must be excellent in each position to create an outstanding team with exceptional results.
How can you create excellent purchasers? By taking part in our training to gain deep knowledge and understanding about the market, expertise on supplier management, a strategic mind set and advanced abilities in cost analyse and negotiation skills.
If you are interested in investing in an exceptional team and increasing your company’s profitability, we encourage you to consider our next training focused on improving strategic purchasing skills. Additionally, please feel free to contact us for more information.
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