Disclaimer: The following column is a reality and a strategy, NOT defamation or a tactic.

THE CONCEPT: Why purchasing and procurement departments should be avoided and how to do it.

THE REALITY: Purchasing and procurement are a way of life.

YOUR REALITY: Your total lack of C-level relationships makes your life a sell-from-the-bottom-up proposition.

HERE’S YOUR SELF-TEST:

• Are you relegated to “purchasing” as part of corporate policy?

• Are you prevented from talking to the person who actually uses the product you’re trying to sell?

• Are you making decisions as to how much profit you’re willing to sacrifice to secure the business?

• Are you bullied into matching price to get the order?

• Are you being TOLD what your price will be in order to “do business”?

Welcome to the club of losers. Not people, profit.

The purchasing department or the procurement department has one major job: to save its company money. Oh wait, let me complete that sentence as it relates to you: to save its company money, at your expense.

In general, when you deal with procurement department people, keep in mind:

• They don’t care about quality.

• They don’t understand outcome.

• They don’t understand the need for service after the sale.

• They don’t understand productivity.

• They don’t care about morale.

• They don’t care about outcome.

• They don’t care about vendor relationships.

• They don’t care about vendor profitability.

• They don’t care about you.

• They NEVER look for the best, just the lowest price.

Procurement departments operate under the general principle of, and are measured and rewarded by: “We saved a nickel!” BUT the outcome of the “saved nickel” may be that everyone in the company is unhappy, the product is crappy and breaks down, or the service response is slow. NOTE TO PURCHASING: It’s also likely that the reduced productivity, low quality and loss of morale cost your company 500 times more than the nickel you saved.

There’s a “rock-paper-scissors” game of business: CEOs cover purchasing and procurement. If the CEO calls down to purchasing and says, “We’re going with Acme Widgets,” the procurement person says, “Acme, Boss? OK, Boss!” And that’s it. No proposal, no bid, no price cutting, no “match this price.” Just a purchase order.

NOTE WELL: This is only possible if you have a relationship with the CEO. Ouch.

ATTENTION PURCHASING: Here are a few recommendations that eliminate “lowest price” from the final decision:

1. Demand testimonials. Don’t just bid. Prove what you promise.

2. Create a “range of price” acceptance. If the price is within 10 percent of the lowest bid, the purchasing agent can choose what he or she believes is the BEST product or service.

3. Let your people test the product.

4. Let your people tell you what they want.

5. Let your people tell you whom they want to do business with.

Purchasing is a vital part of any large company. The challenge I’m issuing is that it is NOT just a price decision. “Bidding” is a losing proposition. “Best” and “value” are the winners.

If you’re a purchasing agent and you personally need heart surgery, do you want best or lowest price?