When they buy the supplies, they try to get the best deals possible, meaning that they get the highest quality service and goods at the lowest possible cost to the company. This is because the company has to keep its own costs low (or "overhead" low) in order to make a profit and still offer its own products at reasonable prices to customers.
Hence, purchasing manager jobs require that purchasing managers keep abreast of inventory levels, sales records, and foreign and domestic suppliers. They may have to negotiate with suppliers to get the best deal; in some cases, if a particular vendor or supplier is going to have difficulty meeting their needs, they may need to know about this at the earliest in order to find a competitor to meet their purchase needs.
In large industrial organizations, purchasing jobs for managers may involve specific duties. Usually, they operate in a supervisory capacity and oversee what other purchasing agents do. In smaller companies, purchasing managers do the work of purchasing agents, too.
Specifically, however, purchasing managers usually work more than being a purchasing agent. They have to actively seek out new vendors and technologies, and may create and keep track of systems that allow individuals within their organization buy their own supplies, which lowers the transaction costs.
Purchasing managers are employed by both the government and by manufacturing firms. They acquire whatever the organization needs to keep things running smoothly, including supplies, services, materials, parts, machines, and other supplies. They may also obtain raw materials if the organization manufactures a certain product. As purchasing managers, they may also negotiate and supervise supply contracts, in which case they are sometimes called "supply managers" or "contract managers."
Especially in the government, purchasing managers often submit and accept bids via the Internet. This requires certain strict regulations and laws be followed, which means that in this case, purchasing managers must know what they are doing and stay within the confines of their restrictions.
Some purchasing managers may also buy for retail or wholesale establishments, wherein they buy goods directly from manufacturers or from other wholesale institutions for resale to the public.
As a purchasing manager, you have to determine which products are going to sell. This means you have to study your market carefully in regards to your particular establishment and determine what appeals to consumers and what they will buy. You have to keep abreast of the latest trends. You do this in a variety of ways; through newspaper ads, by checking competitor prices, and watch the economy in general to see what consumer behavior will be in the near future. If you work for a relatively large firm, you are usually responsible for just one line or product (or a small number of them). If you work for a small company, you may be responsible for buying the complete inventory.
Education and background
Depending on where you become a purchasing agent or manager, you may need to have a bachelor's degree with business emphasis completed. In some cases, you may need a more specialized or advanced degree, such as a master’s degree in engineering or economics if the products you deal in requires this kind of background. If you want to become a purchasing manager, you may need to have a master's degree.
Once you have the degree, you can apply through various job sites online for entry-level work. In entry-level purchasing positions, you will be trained in your employer's specific business and set up. You will probably begin by selling merchandise yourself and keeping track of stocks, among other more mundane duties. If you can show that you have the talent, you could be given greater responsibilities regarding the purchase of inventories.
Depending on, where you work, you could be enrolled in various training programs to learn about your company's purchasing practices and operations in general.
Other qualifications
You will need to have good indication and negotiation skills to get the best price; you will need good math skills and knowledge of supply chain management in order to predict when supply and demand is going to affect price and how to calculate this. In addition, you should be able to perform financial analysis when needed to make your decisions. You also need to analyze suppliers' bids and proposals to get the best deal. Being a leader is important, too, because you are usually going to be supervising other entry-level buyers, dealing with suppliers' representatives, and perhaps company executives, too.
Job outlook and compensation
Purchasing managers earned an average of about $81,000 in 2006. Demand is expected to be stagnant for purchasing managers or even drop, given the soft economy at present.
