Bringing cultural change to the purchasing function
Dennis Eagle’s new head of purchasing & supply chain, Chris Benton, is keen to dismiss the traditional perception of purchasing as a purely cost-cutting function. Since joining in November 2024, he’s put purchasing on the front line of strategic risk management and is collaborating more closely with operations, engineering and sales to deliver an increased service level to the business.
“Having worked previously for a private equity-backed group, I am happy to have joined Dennis Eagle, a well-grounded, healthy, people-oriented manufacturer. It has allowed a return to utilising my purchasing know-how in supplier negotiations, reducing cost, improving performance and mitigating supply chain risk,” says Chris Benton.
“There is a historic perception that purchasing is just about getting stuff cheaper with little respect for service. But as we’ve seen recently with COVID 19, political instability and war, it is a lot more than chasing the pound. Purchasing must ensure continuity of supply and that the best quality materials arrive on time. My team is the custodian of Dennis Eagle’s money, which means we have to consider very carefully how the supply chain is managed and developed.
One of the contemporary challenges of managing supply chains and reducing risk is understanding the suppliers’ financial stability. In the UK today, around 200 businesses a week are going through liquidation. It is our job to ensure our suppliers are not one of those. We check for liquidity issues, assess continuity of supply and balance whether there is overdependence on one supplier,” he continues.
While building a high performing supply chain is the primary function of purchasing at Dennis Eagle, Chris and his team are constantly identifying opportunities to improve supply chain costs contributing to improving the company’s overall financial performance. At any one time there are potential projects in the pipeline that could reduce costs within 12 months, a proportion of which is from preliminary negotiations with suppliers. So, what are Chris’ top tips for successful negotiation?
“Always prepare your knowledge very deeply in each specific category beforehand and avoid off-the-cuff negotiations. If you’re in negotiation with a fabricator, for example, make sure you understand the metal commodity market and all the different angles at play. Understand currency exchange and local labour rates, as well as whether it is a buyer’s or seller’s market. It is also important to remember that a negotiation is for mutual benefit. There has to be something for both parties,” concludes Chris Benton.