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Mar 9
Sourcing Chain of Command

How does the chain of command flow in your company once it leaves Purchasing? 

This is not the innocent question it might seem at first glance.  The answer reveals many things including the importance and respect placed upon the department as well as the likelihood of success with major initiatives.

Traditionally, Purchasing has reported to a Facilities division head.  In recent years, the trend has been for Purchasing to switch to a Financial area.  This makes more sense.  After all, it always comes down to money.  Spending it more efficiently or saving it are the reasons (along with the operational and logistical aspects of course) that the profession and the departments exist.  

One should also consider the political atmosphere in a company as well.   Any department will be more favorably looked upon if it reports to senior management members who are well regarded in the company.  Finally, the fewer steps between the head of Purchasing  (whatever his or her title) and the CEO, the better. 

What is Purchasing's chain of command in your company and how do you think that impacts what you do?      


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