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?
Mike views partnerships as an important part of materials management and purchasing, especially with small companies. With partnerships, Swisher Systems is able to call on short notice and have its orders fulfilled, a lot of the time without expediting charges Companies would be less likely to help Swisher Systems if it was not for Mike taking the time to get to know the suppliers' representatives on a personal level. Mike gave as an example the time he was in the hospital, when many of his suppliers' representatives actually visited him. He stated that "this kind of a relationship is not made overnight" and even though he has personal relations with vendors, he is still stern and fair in negotiations. He said this done through honesty and integrity, which he claimed as the secret ingredient to being an effective purchasing manager.
Mike's enthusiasm for purchasing and supply chain continue in the follow- observed by Todd Mike's views on purchasing standards continue in the following section.