Joe Semorad Relies on Relationships—and the Golden Rule—to Procure Products on Time and on Schedule
He’s been called one of the nicest—and most successful—purchasing guys in the field, but for Purchasing Manager Joe Semorad of Ceitronics, doing his job correctly is just a matter of following the Golden Rule.
According to Semorad, you simply treat vendors the way you would like to be treated. At Ceitronics, this means that Semorad makes sure all vendors are paid on time, consistently, year after year. No exceptions. It means that each relationship with a manufacturer, rep, or distributor is treated with respect, and is completely professional.
And the result is that Semorad can line up products for Ceitronics’ fast-track projects while competitors are still waiting for inventory.
“We rarely have problems getting a product, or getting a product on time,” says Semorad. “And this can be a big competitive advantage in today’s fast-track job market. On some of our jobs, it can be 120 days or less from contract to completion, and having the right product at the right time can be critical.”
In fact, some vendors are so satisfied with their relationship with Ceitronics that they will call Semorad even before he places an order, asking him to forecast his needs for the coming year. Then they fit his prospective orders into their upcoming quarterly inventory. And new vendors soon learn to make room for Ceitronics and what Semorad requests.
“When I make a cold call to get a product, I ask for a quote, and before the vendor gets a chance to say anything, I say, ‘If I get this job, I’ll put a deposit for 50% up front in your hands. The day it ships you call me, and I’ll FedEx the rest of the check to you.’ Ceitronics has a great credit history—no one has to stand in line to get money.
“I don’t see or entertain a lot of vendors, like some companies in our business,” says Semorad. “I don’t do lunches. I meet people early in the morning or late in the afternoon. I feel that if I keep it strictly business, and our vendors know who I am and I understand where they’re coming from, I can get things from them without reaching, and without a ‘you owe me’ attitude.”
Purchasing builds relationships for Ceitronics
Semorad estimates that he and his staff inventory and stage over 40,000 pieces of equipment each year. Many of the products are for cutting-edge technology installations. Often each piece will be programmed and then integrated by Ceitronics project managers and field staff. Ceitronics just expanded its onsite warehouse, and has added 8500 square feet of space for both long-term and short-term warehousing needs.
The Ceitronics Purchasing Department also maintains a complete library of catalogues and publications that describe each product. This library is often referred to as the heart of the company, because it contains not only sales and order information, but also contains technical data and engineering white papers.
“We probably get five to seven pounds of literature each week,” says Semorad.
Because Ceitronics handles many different kinds of systems integration installations, the method of purchasing varies from project to project. Many of the audio/video products, for instance, are acquired through rep organizations. On the other hand, products for voice/data projects would more likely be acquired through distributors. And security and fire alarm products may be acquired direct from the factory. Knowing all the channels of distribution is part of the challenge.
“Purchasing in other fields is very different,” says Semorad. “Other industries list products with the same deliverable at the same price. But our industry doesn’t work that way. Each manufacturer in audio/video and security and voice/data is unique unto itself. There’s research that goes into purchasing the right product—a Sony isn’t like a Panasonic. There’s no common thread that runs through the products.
“Manufacturers are often building product as orders are coming in. I spent a whole day recently trying to find some common 20-inch Sony TV sets. Sony was in the middle of a model change. The people I would normally use to purchase the product had already sold out of the old because they’re awaiting the new model. The demand in some areas is outstripping supply.
“As purchasing people, we’re not really an authority on what product does the job. We rely on our project managers or consultants for that. We’re an authority on how to get it, where it’ll come from, how to be expeditious about it, how we are going to price it.
“I tell my staff: 98% of what you do here doesn’t apply to any other industry. We don’t buy products based on a commodities market, we don’t buy staged inventory, we always have changes, because somewhere in the course of the project, invariably something has changed.”
Good communication makes the project flow easier
Semorad says one of his most memorable purchasing challenges was the $6 million project Ceitronics completed a few years ago for San Francisco City Hall. Ceitronics installed cutting-edge technology, plus some prototypes used for the first time.
“I anticipated that there would be the normal problems that go along with a $6 million project,” said Semorad. “In hindsight, we had our moments, but that job just flowed. It was like pouring water out of a pitcher. I’m still amazed at it. We had good communication throughout the company. The project manager was talking to CAD, and CAD was staying informed, and the field was staying in touch with us. Everybody worked together on that.
“I think the factories worked well with us, especially Crestron, which installed $760,000 worth of equipment. And this just wasn’t any building. This is a historical building and you don’t want to damage any surface. It was really a feat!”
Joe Semorad has been called the ‘company conscience’ of Ceitronics. While performance has been key to Ceitronics’ success, for Semorad maintaining a professional relationship with the manufacturer and the client is the key to high levels of performance. “I try to be extremely fair with everyone,” said Joe. “Good communication makes the relationship flow easier. No one can fault you for being articulate.”
Semorad’s Purchasing staff includes Aaron Gardner, Trish Lukins, Arlene Starling and Michael Watt.
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Illustrations
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