How important is it to have a purchasing manager?
When is the right time to hire a purchasing manager. I work for an owner that for some reason doesn't believe having a purchasing manager is going to make him any money. He thinks the money spent on a purchase manager's salary and associated costs would be more than what that position could save him or make for him.
Here is the crazy thing about this, we are constantly running into situations where purchasing gets out of control but nothing happens. I am what you might call a controller / database developer / manager / estimator /, I do just about everything when it comes to the books. We currently operate a wholesale supply with a 7000 sqft inventory, an installation company, a restoration company, and have a HVAC company that just started in January. Combined we do upwards of 8 million a year. Our purchasing power is significant to say the least, between our wholesale company and the restoration company we will average a 200-400k a month just in purchases for jobs. This doesn't include the vendors we hire for restoration company.
In my opinion the money we would save could be huge. With somebody solely dedicated to getting the best price, managing purchase orders, returns on product, managing what is taken from the warehouse for internal companies, and flat out theft.
Can anyone share any experiences that you might have had with your business, or suggest some ideas to help me convince him that it would be beneficial for all his companies.
When is the right time to hire a purchasing manager. I work for an owner that for some reason doesn't believe having a purchasing manager is going to make him any money. He thinks the money spent on a purchase manager's salary and associated costs would be more than what that position could save him or make for him.
Here is the crazy thing about this, we are constantly running into situations where purchasing gets out of control but nothing happens. I am what you might call a controller / database developer / manager / estimator /, I do just about everything when it comes to the books. We currently operate a wholesale supply with a 7000 sqft inventory, an installation company, a restoration company, and have a HVAC company that just started in January. Combined we do upwards of 8 million a year. Our purchasing power is significant to say the least, between our wholesale company and the restoration company we will average a 200-400k a month just in purchases for jobs. This doesn't include the vendors we hire for restoration company.
In my opinion the money we would save could be huge. With somebody solely dedicated to getting the best price, managing purchase orders, returns on product, managing what is taken from the warehouse for internal companies, and flat out theft.
Can anyone share any experiences that you might have had with your business, or suggest some ideas to help me convince him that it would be beneficial for all his companies.
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