1.4 The Evolution of Purchasing

Purchasing wasn't always a strategic value-added function (see Figure 1-3). Before World War II, companies managed purchasing as a clerical function and purchasers "placed and chased" orders. If you wanted to move up in the organization, purchasing wasn't the career for you. Over time, external events—primarily materials shortages—and strategic trends—e.g., lean management and outsourcingThe act of obtaining goods or services from a supplier in place of internal sourcing. You are only outsourcing if you could have / used to produce the good or service internally, and are now choosing to source from outside the company. —combined to elevate sourcing to its current strategic position. The result: a job in purchasing can launch you on an exciting career path that can lead to the C-suite.

Today, consultants like to talk about value-added processes spanning functions and firms. They claim organizational boundaries are blurred. What does this mean to you? Your company depends on suppliers for more than goods and services. You rely on suppliers for product and process innovations. As a purchasing professional, you are responsible for acquiring, developing, and coordinating the capacity and capabilities of a world-class (and probably worldwide) supply team.

Why is this brief history lesson important? At some point in your career, you will work with someone who still sees purchasing as a non-strategic player. When this happens, you will need to demonstrate the value purchasing brings to the table. Of course, learning to show how you contribute to your firm's competitive success is a great skill to cultivate regardless of your chosen career path