The purchasing department plays a fundamental role in the company, not only from an economic point of view but also from a stability and growth

For many, the role of purchasing director seems like one of the managerial jobs simpler, especially if seen by salesmen who, perhaps, find it difficult to sell the products that the company produces or distributes due to competition, commercial dynamics, the geographical position of responsibility and the fact that in the end it is always the customer who decides.

It seems that the activity of the purchasing office is simpler because, with roles reversed, it can choose the product or service which he deems most appropriate, examines the offers of suppliers, weighs their quality and price and then makes a decision. The game is done.

But in reality professional management in the world of purchases does not work exactly according to appearances, because if it is true that there is no the anxiety of closing the sales order, perhaps affected by a thousand variables, there is the responsibility to make the best possible purchase, in the necessary quantities, at the most correct price at that moment, to give continuity of supply to the company, of production o marketing of products, building a pool of reliable suppliers.

It is difficult to be able to talk about common rules on the best possible approach to purchasing work, as each company has a reference market and to compare work techniques in different markets, with different materials or services, is not correct or useful.

There are in fact differences of strategy between the purchase of raw materials, semi-finished products, products to be marketed or services, moreover each of these categories enjoys great diversification within them with price, quality and availability dynamics that can be completely different from each other.

I would rather focus on the behavioral aspect of the manager who manages purchasing operations on behalf of the company, where his approach in Supplier comparisons can make a difference to the company they work for.

There are two theories of work and approach to purchases:

- the one who believes that every money saved in incoming products or services is always money earned for the company, which we could therefore define “squeezing”

- the one that believes it is necessary to retain both suppliers and customers, where the price is one of the components of the work but not the only one, which we will call "loyalty"

Starting from the first, the manager who uses the supplier squeezing tactic, we are faced with a person who knows the power he can exercise in the negotiation phase, succeeds well in the role as an intransigent price destroyer, he can frequently change suppliers who do not meet his price requirements, and he assumes that he has sufficient business attractiveness to allow him to always fish new companies from the market when necessary.

He is a person who works to reduce margins for suppliers, aims to ensure large shares of turnover that produce strong credit exposures, in order to weaken their position towards the company and imposes stringent general conditions in contracts.

We can say that a very unbalanced relationship is created, critical for the supplier but, in the long run, also for the company, where the lack of mutuality in the work generates tensions, disputes, with the risk of worsening the service and the continuity of the relationship.

The second approach to purchasing is the one carried out by the "loyalty" manager, who sees the qualified supplier as an important part of the company, an external colleague with whom to do the business journey together, in an attempt to create mutual satisfaction.

Negotiations between company and supplier are not set up on the display of unilateral power, on tight negotiation of the price, taking all other parameters for granted.

The loyalty manager is concerned that the service he is buying can be produced over time, without interruptions or continuous changes of suppliers, that there is harmony and willingness to overcome problems or errors, that a price is established that is profitable for both, that the credit management report gives security and confidence to the supplier.

This approach aims to create a positive harmony in which both can manage the relationship in an elastic way, increasing interest and respect for companies, and to work towards solving problems or satisfying special requests that may arise during the working year.

Machine translation. We apologize for any inaccuracies. Original article in Italian.