(www.panoramabrasil.com.br - 10/04/2008)

OPINION - Purchases: a corporate competitive differential

Martha Verçosa

SÃO PAULO – Everyday, companies have to face up to all types of difficulty, obstacle and challenge as they go about their normal business. Two fundamental aspects that have a direct impact on the results of the company are the way in which they sell and they way in which they buy.

Today, I want to talk about transforming the Purchasing area from a cost center into a profit center.

TRANSFORMING PURCHASING

In the 1980s the Purchasing area had an operational and bureaucratic role as the “issuer of purchase orders”. As a general rule it was headed up by a coordinator, or at most a middle manager, and reported to either the manufacturing, administrative or finance area.

In the 1990s the area became strongly process-oriented and started being perceived by companies as a “support” area. At the time it was common for Purchasing to report to the company’s finance area and be headed up by a senior manager.

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