'Keep it Simple' - Back to Basics

As we come to the close of another Football Year, both College and Pro, we remember back in the Spring all Coach's seemed to say in unison, 'let's get back to basics, blocking and tackling'. While we have seen some examples that many teams could still use some work on those activities, where are we on the basics?

In my 40+ years in this profession, it has gone by many names, Buying, Purchasing, Materials Management, Procurement, Strategic Sourcing, Supply Chain and now BlockChain. The basics have not changed! They still are;

  • The Right Product
  • At The Right Price (Cost)
  • At The Right Time (Week, Day or Hour depending on industry)

The 'Right Product', or Service means not just the item or service that was requested but in most cases it also includes, the right quantity, quality and specifications to meet the implied (if not clearly stated, which happens) need! These make it more than just what you can find that might satisfy the requestor.

The 'Right Price/Cost' is simply that if we sell this for $1, you better be buying it much lower to allow for internal costs/overhead and profit. The lowest cost is not always the best costs, if quality is impacted. The highest costs is never the right cost since you would like to keep your job.

The 'Right Time' is whatever your industry/company considers acceptable inventory holding time. Remember there are costs to just set on inventory. If your payment terms to your supplier are payable before your shipment and invoice is payable from your customer, cash flow is effected and that has a clear cost to the company.

In my 40+ years in this profession I have held just about every title applied to our profession from Jr. Buyer to Director and all the one's in between.

But it always comes back to the basics, are you delivering value to the Companies Bottom Line!

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