RICHARD A. ERDMANN, C.P.M., CBM 10931 Arbour Drive Brighton, Michigan 48114 (810) 494-9246 Home (810) 599-2807 Cell richarderdmann@msn.com http://www.linkedin.com/pub/dick-erdmann/1/580/694 SENIOR LEVEL PURCHASING AND SUPPLY MANAGEMENT / PROCUREMENT PROFESSIONAL Results-driven supply management executive. Directed over $36M cost savings effort. Delivered revenue growth and efficiency improvements. Increased category spend compliance by 27%. Increased compliance added $7.5 million to bottom line. Decreased inventory dollars by 20% and increasing turns by 13%, thus affecting working capital availability. Reduced tactical transaction costs by 12%. Proficient and adept at new commodities and industrial environments. Expertise: Achievements in Cost Reduction/Cost Containment…Strategic Purchasing … National Supplier Agreements … Negotiations … Spend Compliance and Analysis … Supplier Consolidation … Strategic Inventory/Supply Management Contract Administration … Achievements in Revenue Growth … Quality (ISO) Computer skills: J.D. Edwards ERP … SHIMS…SAP R/3 … Baan…MS Word, Excel … Certified Purchasing Manager (C.P.M.) Institute for Supply Management (formerly NAPM) Certified Business Manager (CBM) Association of Professionals in Business Management EXECUTIVE PERFORMANCE OVERVIEW DIRECTOR, PRIVATE LABEL PROCUREMENT The Harvard Drug Group- Major Pharmaceuticals, Livonia, MI 06/2009- Present National Wholesale Generic Pharmaceutical Company focused on providing Rx and OTC pharmaceutical products. Market segments served include: Institutional organizations, Hospital Group Purchasing Organizations, Long Term Care facilities, Federal and State Government Agencies. Annual revenues in excess of $200 million dollars. Managed a procurement operation, regulated by the FDA, encompassing over $100 million dollars in Rx and OTC pharmaceuticals. Contract packaging and private label purchases exceeding $15 million dollars annually. Key Results: Initiated supplier rebate program resulting in increased revenues of $4.05 million dollars in 2012 and on target projection at $4.5 million in 2013. Negotiated cost savings in excess of $2,000,000. Cost avoidance efforts topped $400,000. Reduced product stability laboratory testing expenses from $1,325,000 to less than $875,000 annually. RICHARD A. ERDMANN, C.P.M., CBM Page 2 MATERIALS MANAGER (Director Level) Oldenburg Group Incorporated, Kingsford, MI 01/2008- 10/2008 Global ISO manufacturer of “engineered to order” commercial heavy duty off-road hard rock mining drills/utility vehicles and Department of Defense Underway Replenishment Systems, deck-side cranes, heavy duty winches and ocean causeways. Created inventory controls and initiated purchasing procedures encompassing an annual spend of over $60,000,000 in raw materials and purchased components across four manufacturing facilities. Responsible for managing the purchasing and materials/inventory departments encompassing 4 managerial level direct reports and 35 in-direct reports. Key Results: Reduced “lost” inventory from $560,000 in 2007 to less than $75,000 in 2008. Established Vendor Managed/Owned Inventory program reducing working capital by $450,000. Avoided increases of over $400,000 in steel costs through coordinated buys. COMMODITY SOURCING MANAGER SPX Corporation, Tools and Equipment N.A. Warren, MI 07/2006- 12/2007 World-wide manufacturing organization servicing the automotive OEM “Essential Tools” requirements and diagnostic service equipment supporting agricultural and heavy duty equipment manufacturers. Initiated strategic sourcing and supplier relationship methodology throughout the business unit for MRO, Finished Goods and Capital Equipment categories encompassing annual spend of $85M. Key Results: Processed over 100 Finished Goods component RFQ’s resulting in savings of over $300,000. Reduced MRO spot buy transactions by 20% with supplier consolidations. Consolidated copy center and print services resulting in annual savings of over $150,000. CATEGORY SOURCING MANAGER A.T. Kearney, Southfield, MI 01/2005- 12/2005 Global management consulting firm directly responsible for strategic sourcing, purchasing and supply management functions for DaimlerChrysler N.A.. Total program spend exceeds $550M annually. Managed $170M annual strategic spend for materials sourcing initiatives supporting 47 N.A. facilities. Strategic sourcing entailed coordinated management of 17 categories with 50,000 sku’s. Key Results: Initiated and executed a cost savings program exceeding $12M. Program entailed cost reductions, material substitution and collaborative process. Goal was exceeded by 9%. Consolidated active supply base from 98 suppliers to 12, across 47 North American facilities. Increased Re-grind materials compliance from 41% to 85%. CORPORATE PURCHASING MANAGER Kennametal Corporation, Latrobe, PA 04/2001– 01/2005 Industrial manufacturing and supply distribution organization (J&L Industrial Supply) (serving OEM, Tier 1 and Tier 2 automotive markets as well as metal cutting tool and equipment markets). Annual revenue of $1.8B. Managed $350M of purchasing and strategic sourcing initiatives. Established spend compliance process; indirect spend guidance and global spend analysis. Coordinated and negotiated purchase agreements to meet forecast. Mentored a staff of 21 personnel with a $1.2M labor budget. Key Results: Delivered $6M in direct material cost reductions and cost avoidance through Supplier Agreement Program for top 100 strategic suppliers. Created supplier relationship program encompassing 650 suppliers. Reduced purchasing transaction costs by $187K, reduced inventory by $6M and increased fill rate from 83% to 96%. Negotiated catalog paper cost reduction of 20%. Realized 20% ($140K) savings on office supplies, shipping materials, corrugated and safety equipment. Obtained $250K savings by consolidating temporary labor providers. RICHARD A. ERDMANN, C.P.M., CBM Page 3 PURCHASING TEAM LEADER (Purchasing Manager) Potlatch Corporation, Cloquet, MN 01/1999 – 04/2001 AREA BRANCH MANAGER Crescent Electric Supply Company, Fairbanks, AK 06/1994 – 01/1999 DIRECTOR OF SUPPLY MANAGEMENT AND LOGISTICS U.S. Army, Numerous Global Assignments Prior to Honorable Discharge EDUCATION AND PROFESSIONAL AFFILIATIONS M.S.M. (Procurement and Contract Management) University of Maryland, University College, Adelphi, MD M.S. (Business Organization Management) University of La Verne, La Verne, CA B.S. (Forestry and Natural Resources Management), University of Wisconsin - Stevens Point, WI Institute for Supply Management (ISM, formally - National Assoc. of Purchasing Managers, NAPM) Association of Professionals in Business Management MILITARY SERVICE U. S. Army, Major Honorable Discharge, 1994