SKILLED AND INFORMED
PURCHASING
S
killed purchasing professionals are a strategic as-
set in any market condition. They know their as-
signed trades and every other trade in the mar-
ket. They know what materials they use, where
they buy them, and who manufactures them.
They know specifi c SKU-level pricing and
the quantities required for each house. They know
the different labor tiers needed to install those ma-
terials and understand the market rates for each
level of skill and the hours required to install the
products in every home.
All that knowledge enables skilled purchasing
pros to avoid unnecessary price increases and to re-
duce costs when the cost drivers go down, having a
profound impact on profi tability. Every dollar saved by
a knowledgeable purchasing professional goes directly
to the bottom line; a sales professional would have to sell 10
times as much to produce the same bottom line impact.
In market downturns, I’ve seen builders turn to their pur-
chasing department for help navigating the storm. But you
must hire the right people, train them, remove roadblocks
to success, and keep them focused on the end goal.HIRING
In my career, I’ve had the privilege of working
with some of the best purchasing talent in the in-
dustry. But I’ve also worked with some real “paper
pushers” who lack skill and aren’t informed or mo-
tivated to do anything but get things done quickly. A
trade asks for a price increase; purchasing processes
the increase. Change order? Simply call the trade, ask
how much it will cost, and process the paperwork.BY TONY CALLAHAN, CONTRIBUTING EDITOR
REGARDLESS OF MARKET CONDITIONS, INVESTING IN AND SUPPORTING
KNOWLEDGABLE PURCHASING PROFESSIONALS PAYS PROFOUND DIVIDENDS
[PURCHASING]
20 Professional Builder August 2019
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