Case 21 Swisher Systems 509
PURCHASING ACCORDING TO MIKE WATKINS
Todd, I will teach you everything I know about purchasing during your internship... We will first start with an overview of purchasing at Swisher.
Mr. Watkins, thanks for allowing me to learn from you." Todd pulled out his pad and began to take notes.
Todd observed that Mike Watkins was a one-man purchasing department. Over the past 35 years, Mike has formulated an opinion of how materials management and purchasing should be conducted. For instance, he outlined for Todd his five most important criteria for qualifying a supplier. The number one criterion is on time delivery. His belief is that if the product is not in possession of the manager, the other factors are irrelevant. The second criterion is quality. Mike's definition of quality refers to both material quality and information quality from the supplier. He then restated that the number one criterion is on-time delivery. The third criterion is value. The fourth criterion is the responsiveness of the supplier's organization, According to Mike, supplier responsiveness is based on how quickly and accurately the supplier can change the order to meet Swisher Systems' requirements. Finally, Mike places emphasis on the supplier's financial stability. What good is it to develop a relationship with a supplier if that supplier will not be around tomorrow?