Purchasing disconnect a problem

The message from Detroit's top-ranking purchasing executives is clear: Quality is paramount. However, some speakers at the Traverse City Management Briefing Seminars identified a growing disconnect between the honchos and the purchasing agents who work for them.

Richard Allen, CEO of the Sealing Products Div. of Freudenberg-NOK General Partnership, says lower-level purchasing agents are evaluated based on the piece prices they negotiate — rather than on the quality of the parts procured. This runs counter to the considerable lip service given to quality.

“When OEMs realize that they are measuring and tasking their purchasing people incorrectly, we will all have a better opportunity to do the right thing,” says Allen. Despite this, he says suppliers must be diligent when it comes to quality and must sell their “value proposition” at the highest level.