Choosing a Consultant

Why Companies Hire Purchasing Consultants

Companies of all sizes are looking to consultants to help with purchasing processes and practices more than ever before. Senior managers are becoming more aware of how smart purchasing turns into profitability. A dollar saved in purchase price goes directly to the bottom line. No incremental sales are necessary to achieve this added profitability. Consultants can evaluate processes and practices and implement changes to make purchasing more effective in terms of cost, quality and value added activities.

Many functional areas within a company have intimate contact with suppliers, and it is essential that all those who interact with suppliers be educated to increase buyers’ effectiveness. Frequently, associates representing functional areas outside of purchasing do not understand the effect their actions have on the supplier/customer relationship. A consultant can be helpful in educating the entire organization, as well as providing employees who are in contact with suppliers with the proper tools. A consultant can also be instrumental in integrating the purchasing process into the business.

Furthermore, the proliferation of on-line auctions, on-line catalogues, and enabling software has created not only an intense desire to participate in e-commerce, but a lot of confusion as to the most appropriate way to go. A knowledgeable consultant can be used to evaluate your needs and suggest cost effective electronic tools appropriate to specific businesses.

Finally, the effect of downsizing should not be overlooked. Downsizing has several dimensions -- most obvious is the need to do more work with fewer people. However, an often overlooked effect of downsizing is the loss of organizational memory and expertise. Consultants provide the necessary skills to compensate for that loss.

How to Choose a Consultant

Like everything else in business there is no “one size fits all” approach to consultants. There should be a very close fit between your business and your prospective consultant in terms of what you are trying to accomplish. Here are a few considerations:

• Does your consultant have an established and proven process?
• Does you consultant have the resources and experience needed to get the job done?
• Can your consultant accommodate your corporate culture? While the consulting process may be consistent from company to company, the personal interaction needs to be tailored to each engagement.
• Can your consultant act as a change agent? He needs the support of the senior management team of your organization. However, he also needs to be the driver of change.

Next Steps

Now you know why you need one and how to choose one. What’s next? It’s up to you to provide the necessary support and resources needed to get the job done. It’s human nature to want to take quick advantage of low hanging fruit. However, if you really want to create sustainable competitive advantage for your company, it requires investment in time, money and human resources. Paying a consultant for short-term gain is a waste of money. Sustainable advantage comes with a combination of education and implementation of best practice processes.