This is something I’ve asked myself a few times over the last 15 years, and each time I came up with the same answer. Without a doubt, every buyer and procurement professional out there gets more excited about some categories of spend than about others. Often they won’t say as much, but you can see their face light up when they’re presented with a requisition or put in charge of a category for a material or service they’re interested in. This interest can vary: maybe they want to get to know the product or service better, maybe they already have experience and knowledge about the product, or maybe the buyer associates some kind of personal or ethical value to the product or service.
Fifteen years ago I proposed to my wife just outside Salzburg in Austria. Prior to that I, of course, had to buy an engagement ring. Firstly I had to define the specification, which was quite tricky as I wanted the ring to be a surprise. A visit to the local jeweller’s soon fixed this matter, and I came away with a good idea of what Maria might want, but with no specific ring in mind.
Over the next few weeks I estimated my budget, researched the possible sources and carried out my homework in terms of diamond specification. After this, I had a pretty good idea of the market pricing associated with any particular level of specification, and also created multiple sourcing options – including online, local and international.
I decided to tie in seeing a friend in the United Arab Emirates with having a wander around the many gold souks in Abu Dhabi. After negotiating with several outlets I decided not to purchase the ring there on account of a lack of certification and documentation confirming the exact specification of the ring.
On my return home I decided to visit a jeweller’s in New York and started to form a good relationship over the phone and Internet with Jeff, the owner. With Jeff’s help, I was able to design the ring myself – a good example of buyer and supplier together creating a specification that suited the customer’s (Maria’s) assumed requirements.
Everything was going fine until the day the ring arrived at the logistics hub in the UK, where it remained for five days. I began to feel anxious as we were about to leave for Austria in four days’ time. I called up the logistics company and was advised that I had to pay taxation and duty on the ring. Surprisingly perhaps, I hadn’t factored any of this into the overall price, and was quite embarrassed that a procurement professional like me could overlook such a matter! This does emphasise the importance of taking whole-life costs into the equation, not just the purchasing price.
In spite of this oversight, the purchase of the ring from an international source proved to be a success as Maria loved it. It was also valued and insured for significantly more than the figure I purchased it for, partly owing to the exchange rate at the time.
I often reflect on this purchase many times and am intrigued when I reflect on how I used my procurement knowledge to secure a successful deal (apart from the tax and duty scenario of course – but that was a good lesson!).
Could I see myself one day following a career as a diamond buyer? Quite possibly. If you have a passion, anything is possible. So, going back to my original question, if you could choose to procure anything – of all the goods or services you’ve dealt with – what would it be?
Over the next few weeks I estimated my budget, researched the possible sources and carried out my homework in terms of diamond specification. After this, I had a pretty good idea of the market pricing associated with any particular level of specification, and also created multiple sourcing options – including online, local and international.
I decided to tie in seeing a friend in the United Arab Emirates with having a wander around the many gold souks in Abu Dhabi. After negotiating with several outlets I decided not to purchase the ring there on account of a lack of certification and documentation confirming the exact specification of the ring.
On my return home I decided to visit a jeweller’s in New York and started to form a good relationship over the phone and Internet with Jeff, the owner. With Jeff’s help, I was able to design the ring myself – a good example of buyer and supplier together creating a specification that suited the customer’s (Maria’s) assumed requirements.
Everything was going fine until the day the ring arrived at the logistics hub in the UK, where it remained for five days. I began to feel anxious as we were about to leave for Austria in four days’ time. I called up the logistics company and was advised that I had to pay taxation and duty on the ring. Surprisingly perhaps, I hadn’t factored any of this into the overall price, and was quite embarrassed that a procurement professional like me could overlook such a matter! This does emphasise the importance of taking whole-life costs into the equation, not just the purchasing price.
In spite of this oversight, the purchase of the ring from an international source proved to be a success as Maria loved it. It was also valued and insured for significantly more than the figure I purchased it for, partly owing to the exchange rate at the time.
I often reflect on this purchase many times and am intrigued when I reflect on how I used my procurement knowledge to secure a successful deal (apart from the tax and duty scenario of course – but that was a good lesson!).
Could I see myself one day following a career as a diamond buyer? Quite possibly. If you have a passion, anything is possible. So, going back to my original question, if you could choose to procure anything – of all the goods or services you’ve dealt with – what would it be?
