Benchmark Your Organization’s Purchasing Effectiveness

Gem , What's Happening in Our Profession Dec 19, 2017 1 Comment

Purchasing survey

Dear Colleague

Back in 2003, we created a simple, on-line survey to help Purchasing Professionals gauge their organization’s overall purchasing effectiveness.

The goals were to first measure attitudes and practices, and then offer concrete suggestions for making improvements. The initiative was successful: almost 3,000 people participated.

One of our readers had a great idea – why not re-do the survey? We could compare new results to the original numbers and see if there’s been a shift in attitudes and practices, over the past 7 years.

These 7 areas are covered and answers range between strongly agree and strongly disagree.

  • Our senior management views Purchasing as strategically important and understands its potential to create competitive advantage.
  • I believe that, if my organization made Purchasing a higher corporate priority, we could reduce what we currently pay by 5% or more.
  • We have good systems in place to measure our organization’s purchasing effectiveness.
  • We use benchmarks that come from outside our organization to confirm that we are paying competitive prices for materials and services.
  • We use outside benchmarks to set our annual budgets to ensure we capture savings opportunities when market prices change.
  • Our Purchasers spend most of their time responding to rapidly changing demands, expediting materials and services, and fighting fires in order to ensure that operations and customers always have the materials and services they need, when they need them.
  • Our purchasers spend at least 5 days per month investigating new sources of supply and improving their marketplace knowledge.

Please follow this link to benchmark your organization’s purchasing effectiveness. It takes less than 3 minutes to complete and you get immediate feedback on how your answers compare to everyone else who has taken the survey. After we’ve collected a few hundred responses, we will publish a comparison to those from 7 years ago – should be very interesting!

Rod Sherkin

Rod is a former senior executive, responsible for Purchasing, for both Pillsbury and Ball Packaging back in the 80’s and 90’s. Since then, he has continued to work in the Purchasing field as both a consultant and founder of the website

One Comments

  1. How can we understand this by filling out the survey? Thanks

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