“Our company owner has a mandate that we protect our suppliers’ margins.
�Not a phrase you hear often in big business today, but in the midmarket procurement model, suppliers are more often viewed as partners with valuable resources to bring than simply part providers.
Just ask Alan Cole, director of purchasing at wellness products maker Melaleuca in Idaho Falls, Idaho. The 2,500-employee company manufactures and direct markets nutritional, pharmaceutical, personal care, home hygiene, and other wellness products throughout the U.S. and various global markets. The company was founded in 1985 and has seen very strong growth. In 1991 its revenues were $30 million and by 2005 they had grown to $705 million in revenues, selling direct to consumers. Melaleuca has three main production facilities in Idaho Falls, Idaho, Knoxville, Tenn. and Shanghai, China. The China facility has been in place for three years and handles only the manufacturing of product that will be sold in China, which accounts for less than 10% of all manufacturing. (Melaleuca is doing some global sourcing through its China site and representatives on the ground there to see if they can find similar products overseas for less.)
Midmarket consumer products firm focuses on supplier success – 12/14/2006 – Purchasing
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