How the purchasing department can contribute to the performance of a high tech group

How can one demonstrate that the purchasing department is essential for a company ? Jean Potage, purchasing manager for Thales, had two major trump cards to help him take up this challenge ; his previous job as researcher and technical manager for Thomson-CSF, and his unfailing willpower. He was convinced that purchases could contribute to innovative management in high tech sectors, and from 1996, he instigated a series of improvements aimed at perfecting practices and strengthening the integration of the purchasing function into the company. He also revitalised his purchasing team, by working on their skills earlier in the purchasing process. A new concept of the role of purchasing emerged. Whereas programmes are becoming increasingly complex, the purchasing function is now recognised to be a real partner by all the other sectors of activity at Thales.