Developing purchasing's foundation

Journal of Supply Chain Management, Spring, 2008 by Michiel R. Leenders, Harold E. Fearon

The Year 1927

In 1927 Mitchell's chapters "Variations in Purchasing Conditions" and "The Operation of the Purchasing Department" were popular references. Mitchell followed his purchasing text with one on production management in 1931 and he combined writing about both fields thereafter (Mitchell 1931).

Purchasing and National Magazine Coverage

The national magazine "Purchasing Agent" first appeared in 1927 and this monthly publication covering a wide variety of purchasing topics changed its name in the summer of 1932 to "Purchasing." Purchasing Agent and its successors including the Bulletin covered a wide range of purchasing topics relating to almost all aspects of the field. Most contributors in the early years were practitioners with significant experience and the ability and willingness to share their insights. Frequent coverage of purchasing topics also appeared in other trade magazines such as Iron Age, Sales Management, Printers' Ink, Advertising and Selling, Factory Management and Maintenance, Textile World, American Machinist, Mill and Factory and Mechanical Engineering.

Standards for Buying and Selling

In 1928 N.A.P.A. developed the "Standards for Buying and Selling." Along with the Principles and Standards of Purchasing Practice of 1923, these two guides for ethical conduct have remained in force for decades.

George Renard

In March 1928 George Renard, a former purchasing and production manager and director of the St. Louis Screw and Bolt Manufacturing Company, became the Executive Secretary of N.A.P.A., a position he would hold with distinction for the next 30 years. In this position, through his guidance and writing, he became the driving force behind N.A.P.A.'s growth and expansion of influence.

More on Scientific Purchasing

Two books of significance appeared in 1928. Both books emphasized the analytical aspect of purchasing, and referred to it as "Scientific Purchasing," a term in vogue then, following the success and impact of the work of Frederick W. Taylor (Taylor, 1915). Taylor referred to the use of his methods as "Scientific Management," because it applied the scientific method of attack to solve management problems. The first purchasing text was written by Norman F. Harriman, who was employed in purchasing by the Union Pacific Railroad. The book stated that: "The science of buying is recognized more clearly in its proper perspective today than ever before. Increasing consideration is being given not only to the first cost but also to the longer range factors of fitness, interchangeability, renewals, replacements, general maintenance, wearing qualities and cost per unit of utility. The tendency to buy at so much per unit of quality or utility, instead of per unit of quantity, is one that will increase. The idea is fundamentally and economically sound" (Harriman 1928, p. 21). Harriman's concept sounds like the beginnings of the 1950s movement referred to as "Value Analysis" Harriman went on to recommend the systematic collection of data by individuals titled "Purchase Engineers" within the department to aid buyers in investigating areas of cost reduction (Harriman 1928, pp. 115, 122-23, 229-30). Thus, the idea of staff purchasing researchers was introduced some 80 years ago.