How to become A Purchasing Manager

Purchasing Managers help organisations run on an efficiently lean manufacturing schedule with just-in-time inventories, so there is no risk of delays in the supply chain shutting down production and potential loss of customers. And they manage to do so while getting the best deal for their employers - the highest quality goods at the lowest cost.

• Manager of Purchasing
• Purchasing Supervisor

What do  Purchasing Managers do?

A Purchasing Manager would typically need to:

• Represent organisations and institutions in efficiently negotiating contracts and formulating policies with suppliers of services and durable and non-durable goods
• Evaluate suppliers based on the price, quality and speed of delivery of their products and services
• Interview prospective vendors and visit suppliers’ plants and distribution centres to assess their capabilities
• Analyse price proposals and financial reports to prepare bids for board approval before sitting down at the negotiation table
• Ensure the suppliers are on the same page as the organisation regarding the date of delivery of products
• Process payment and invoices; develop cost reduction strategies
• Sit with staff and vendors to discuss defective or unacceptable goods and services and determine corrective action; resolve vendor or contractor grievances
• Evaluate and monitor contracts to confirm that vendors and suppliers comply with the terms and conditions and to make any changes if necessary
• Maintain records of items bought, costs, deliveries, product performance and inventories; forecast stock levels
• Develop and ensure implementation of proper purchasing and contract management policies and procedures to avoid potential conflicts of interest; prepare and process requisitions and purchase orders
• Attend meetings, trade shows and conferences to research and identify new products and suppliers and to keep up with market trends
• Interview and hire staff; oversee staff training; control purchasing department budgets; plan and coordinate the work of buyers and purchasing agents

Most Purchasing Managers work in comfortable offices. Travel is sometimes necessary to visit vendors or suppliers and to review products. Those who work for multinational companies may need to travel overseas.

In general, Purchasing Managers work full time and put in standard hours from Monday to Friday. Occasional deadlines require overtime. Part-time work is a viable option.

Finding a new job might seem challenging. Purchasing Managers can boost their job search by asking their network for referrals, contacting companies directly, using job search platforms, going to job fairs, leveraging social media, and inquiring at staffing agencies.

Purchasing Managers are generally employed by:

• Manufacturing Industries
• Retail and Wholesale Trading Sectors
• Service Industries
• Government Organisations
• Local Authorities

Professional associations and organisations such as The Next Level Purchasing Association are crucial for a Purchasing Manager interested in pursuing professional development or connecting with like-minded professionals in their industry or occupation.

Membership in one or more adds value to your resume while bolstering your credentials and qualifications.

• Market risks, potential frauds, cost, quality and delivery risks
• Compliance risks such as anti-corruption and policy adherence
• Dark purchases made outside the defined procurement process
• Tough to locate and track information across numerous spreadsheets in a time-efficient manner
• Negative impact on deals, clients and vendor relationships because of incorrect data due to small mistakes and omissions
• Security risks
• Inventory shortages or excess inventory due to inaccurate data
• Failure to adopt technology
• Supplier management - identifying the right supplier, keeping track of vendor performance and ensuring a steady supply of quality products

Purchasing Managers must have had at least five years of work experience in procurement. Most begin their careers as a buyer or purchasing agent. Many others enter the profession as an administrator or assistant in the company’s purchasing department.

Read about the profession and interview/shadow experts working in purchasing to prove your commitment to course providers and prospective employers.

The qualifications required vary with the employer. In general, Purchasing Managers choose to hold a bachelor’s degree in business studies, finance, logistics, military technology or supply chain management. Some employers accept a Higher National Diploma (HND) or Higher National Certificate in the above mentioned subjects.

Some organisations may be okay with a high school diploma, but larger stores and distributors prefer applicants with a bachelor’s degree that gives them expertise in business and accounting.

Employers in fashion retail, engineering, quantity surveying and construction prefer applicants with relevant qualifications and technical knowledge of the particular industry.

Many manufacturing firms seek candidates who have a bachelor’s or master’s degree in engineering, economics, business or one of the applied sciences.

Check if you can enrol in a structured graduate training scheme from your local chartered institute to obtain progressively higher certificates and diplomas in purchasing and supply. The courses are available through local colleges as well as private training and distance learning providers.

There is also the option of studying for a National Vocational Qualification (NVQ) in supply chain management. Achieving an NVQ level 4 would make you eligible to become a member of your local chartered institute of purchasing and supply. It would ease your way into the role of a Purchasing Manager.

Make sure your high school classes include business, math, accounting, economics and English.

Certification demonstrates a Purchasing Manager’s competence in accounting, business and supply chain management, typically through work experience, training, and passing an examination.

Certification from an objective and reputed organisation can help you stand out in a competitive job market and carry a significant salary premium of up to 18 per cent.

Performance, experience, and the acquisition of professional qualifications drive the career progression of Purchasing Managers who can advance to Supply Manager and Director of Materials Management before becoming the Chief Procurement Officer (CPO) of an organisation.

Larger companies offer better opportunities for promotions, overseas jobs and movement into related areas such as supply chain management or buying commercial and trade goods.

Candidates with knowledge of supply chain management, accounting and business through formal education and significant work experience have the best job prospects.

Continuing professional development (CPD) will help an active Purchasing Manager build personal skills and proficiency through work-based learning, a professional activity, formal education, or self-directed learning. It allows you to upskill continually, regardless of your age, job, or level of knowledge. CPD is also essential for the regular renewal of desirable certifications.

A working knowledge of the goods or services you intend to purchase will efficiently help you carry out your responsibilities.

You may require a master’s degree to advance to top-level jobs in purchasing and procurement. Additional production, planning, logistics, and marketing certifications will help you prepare for positions where purchasing and management duties overlap.

The Essential Difference

When the titles of purchasing, procurement and supply chain managers do not match the responsibilities, potential candidates become disoriented.

The supply chain manager looks after inbound materials and directs outbound flow. They work closely with research & Development (R&D), sales, IT, operations and finance.

The procurement manager takes care of everything that happens before sending out purchase orders. They also oversee purchasing and work closely with R&D and sales.

The Purchasing Manager has a more operational role to play. They make sure that purchasing requests are filled and work with operations and R&D. Their main goal is to ensure on-time, on-quality and on-cost deliveries.  

Although Purchasing, Procurement and Supply Chain Managers are often used interchangeably, especially in job ads, they do not have the same job responsibilities.

If there is one thing a Purchasing Manager can be sure of, it is that they will never have a slow day at work. The multiple hats they wear and the range of duties they perform make it a given that they face challenges regularly. And yet, every effort they make to identify and overcome those challenges directly impacts the organisation’s bottom line. Are you game?

“Let us never negotiate out of fear. But let us never fear to negotiate.”

 John F. Kennedy