OPPORTUNITIES IN PURCHASING

As someone who is in the process of investigating various possible career directions, you probably fall into one of the following two categories;

1. The career beginner: The career beginner is someone in college trying to decide on a major, someone who has just graduated and is trying to decide where to apply and in which field, or someone who has been out of high school for some time and has made the decision to find a position that has an on-the-job training potential and a chance for advancement.
   
   
2.  The career changer: The career changer is a person who has been out of college for several years and is headed in a career direction that is not suited to him or her anymore. This person may be in a job in which he or she has reached a plateau or a dead end. Sometimes the career changer has decided to return to school to finish or supplement his or her education to prepare to enter another career field. The career change may also be a person who has been out of the job market for an extended period of time, and his or her skills are now obsolete.

Whatever your situation, you must first determine what you want your new career direction to do for you. Ultimately, you must also decide what you can do for the potential employer; however, job satisfaction is a two-way street. The employer gains when you meet its needs and you gain when the employer meets your needs, and seldom does an employer/employee relationship work when mutual needs are not met.



You will have a far greater chance of finding a career that is suitable and productive for both you and your employer if you understand yourself and your needs before you begin the search. The purpose of this chapter is to describe the opportunities and the conditions found in the purchasing field; however, it is up to you to determine whether purchasing is the field for you. For example, your answers to the following questions will help you make that determination as you continue through this chapter and the remainder of the book.

• Are you most comfortable working with other team members or working alone?
  
  
• Can you function well if you are under pressure in a fast-paced environment?
  
  
• Can you adhere to quality standards and not cut comers? Are you comfortable following guidelines?
  
  
• Do you enjoy solving problems, or are you more comfortable following a set routine?
  
  
• Can you learn new and complex material rapidly? Do you like being involved with new concepts?
  
  
• Are you imaginative?
  
  
• Do you have a well-developed sense of humor?
  
  
• Are you self-reliant and even tempered? Can you tolerate stress?
  
  
• Are you committed to following through on every job?
  
  
• Can you work effectively within an organizational structure?
  
  
• Can you work with detail and yet understand theory and concepts?
  
  
• Do you need the challenge of important and meaningful work?

In addition to psychological needs, which can vary widely between individuals, there are some needs or desires that are common to most. For example, most people want a job that is interesting. Most want good pay and benefits, pleasant working conditions, and the opportunity for advancement. Those of you who have had some experience in the work force also want supportive management and an opportunity to provide ideas and input. Many want to work at a job that is meaningful and produces tangible results. AD of these job factors is important when making a career choice.

As we investigate purchasing as a potential career path, we will first look at some of the more obvious characteristics, such as compensation levels, benefits, and working conditions. Keep in mind, however, that this career field is multifaceted and that many of the job factors will depend upon the size and location of the organization, the type of activity (manufacturing, service, or wholesale/retail), the level of technology, and the economic environment.

COMPENSATION

Salaries in purchasing are comparable to other specialties in business and government.

Benefits are usually excellent since many purchasing positions are found in larger organizations. Medical, dental, life insurance, vacations, and tuition reimbursements are standard features in most benefit plans.

WORKING CONDITIONS

Since purchasing is a critical function in every type of business or government activity, working conditions in terms of working environment, activity, and variety are usually excellent. There is ample opportunity to travel and considerable interaction with coworkers and suppliers at all levels. Because of the nature of the job, there is also considerable independence of action-super vision tends to be general rather than close.

Since new products and services are being developed constantly and methods of doing business are continuously changing, most companies offer many opportunities for education and self-improvement through seminars, training classes, and other educational programs. Most organizations maintain easy access to professional associations like the National Association of Purchasing Management and their state affiliates. These associations sponsor numerous conferences and seminars at local, state, and national levels and act as conduits for a variety of information of concern to the purchasing professional.

JOB STABILITY

Purchasing positions tend to be very stable, much more so that positions in sales or manufacturing. Again, because of the nature of the work, purchasing is more insulated against the ups and downs of business activity because the numbers change, but the products and services still must be procured.

Job stability is also enhanced because of the complexity of the job. A purchasing manager or a buyer has developed a knowledge of the market and the potential suppliers that is not easily replaced, the fact that higher levels of positions in purchasing are filled by promotions from within also contributes to general job stability. The exposure to all levels of management and functions of the organization make the purchasing official an indispensable part of the team.

ADVANCEMENT

Organizations tend to promote from within the purchasing field. However, because of their knowledge of internal operations of the organization as a whole, purchasing officials are often promoted to other high-level positions on the top management team. In fact, many people enter purchasing as a means to advance into general management.

Larger organizations have numerous advancement opportunities within the ranks of middle management. Purchasing managers advance from section managers to group or project managers and then go on to divisional responsibilities.

PROFILES OF PURCHASING PROFESSIONALS

Purchasing Magazine surveys about two thousand purchasing professionals to determine how their jobs are changing and what their educational and work backgrounds are. Although most of those surveyed are purchasing managers and agents, some are at the director and vice-president levels. These surveys provide an overview of the successful people in purchasing, what they do, and how they got to the positions they now hold.

Fifty-nine percent of those questioned have a four-college degree. Over 50 percent of those graduating majored in business, 15 percent in the sciences, 22 percent in liberal arts, and 10 percent in other fields. Of those not having a four-year degree, 23 percent are currently working toward their bachelor's. Twenty-two percent of those responding have an advanced degree.

Since purchasing has only recently become an area of specialization at the college level, it is not surprising that most respondents have had experience in non-purchasing fields. Sixty-one percent have inventory experience, 56 percent in production, 36 percent in sales, 28 percent in accounting, and 9 percent in engineering.

Approximately half of those answering the survey were either assigned purchasing duties or drifted into the field by some other method. Twenty-seven percent entered purchasing as a career choice, a percentage that has increased dramatically in the past four years.

The average length of time in purchasing is 13.2 years, and the average time with the same company is 11.4 years, which seems to confirm the stability of purchasing jobs. The average purchasing professional supervises an average of seven subordinates, usually four professionals and three clerks, and controls a median dollar value of purchases totaling 11.5 million.

The average purchasing professional sees slightly over eleven salespeople per week. Forty-two percent meet daily with top management, 26 percent with marketing, 54 percent with engineering, 64 percent with production, 39 percent with finance, and 32 percent with maintenance. These statistics confirm the fact that purchasing professionals spend much of their time interrelating with other departments within the organization.

Purchasing professionals also spend considerable time serving on standing and ad-hoc committees such as production, human resources, management, finance, and operations. Again, serving on such a broad range of committees provides the purchasing professional with an overview of organizational policy and procedures.

Ninety percent of purchasing professionals travel as part of their job. They average ten trips per year, although some travel excess of 100,000 miles per year. Reasons for the travel include investigating supply facilities, negotiating with suppliers, and attending trade shows.

Eighty-seven percent indicated that, if given the chance to start over, they would again choose purchasing as a career. The level of satisfaction is very high, much higher than most other career fields. Consequently, we must assume that a purchasing career meets a high percentage of the needs and expectations of those involved.

PREPARING FOR A CAREER IN PURCHASING

Consider first that practically every organization in both the private and public sectors requires the purchase of some type of product or service. Each position demands a different background and knowledge although certain personality characteristics are considered essential for most purchasing positions.

Personality Characteristics

The National Association of Purchasing Managers lists the following characteristics as being most desirable for potential purchasing professionals:

• integrity
  
  
• dependability
  
  
• cooperative nature
  
  
• tact
  
  
• an ability to learn
  
• an ability to work on details
  
  
• mechanical aptitude
  
  
• good interpersonal relationship and communication skills
  
  
• an inquiring mind
  
  
• a sense of value
  
  
• High ethical standards
  
  
• sense of humor
  
  
• the ability to tolerate stress
  
  
• the ability to make comparative judgments
  
  
• the ability to think, write, and speak intelligently and logically

There are some psychological and personality traits that seem to be consistently valuable, regardless of the type of purchasing classification. For example, most purchasing positions require much interaction with other departments and suppliers. Consequently, the persons in those positions must be group motivated-they must receive satisfaction and incentive by working closely with others. They must be supportive and socially self-confident, completely comfortable in their role as a team player.

Since much of their time is involved in their role as a negotiator, they must be assertive without being overbearing, they must be emotionally stable, and they must not let their ego get in the way of their common sense. Also, they must be able to cope with situational pressures.

Some of the time they will be working alone, during buying trips, facility and process inspections, and conferences. They must be self-motivated, disciplined, and organized.

Much of their work involves problem solving. Consequently, they must think in abstract, conceptual terms; have excellent analytical skills; and be able to communicate ideas or points of view verbally and in writing.

Normal career progression involves management responsibilities at some point. Therefore, the purchasing professional must be even tempered and consistent in mood. He or she must also have excellent management skills.

Since the purchasing professional often has access to sensitive information concerning company operations, he or she must have a strong sense of loyalty and corporate ethics.

Purchasing professionals control large sums of money. Often this control places them in a position of being offered inducements for preferential treatment. They must have impeccable standards of ethical conduct and be fair and honest with a strong sense of integrity.

In summation, the purchasing professional is someone occupying a position of trust, a position critical to the success of a company or organization. The demands of the professional are many and require someone emotionally stable. Those considering purchasing as a career must be prepared to make a commitment to the high ethical standards of the profession.

Recommended Educational Background

There is a definite trend toward the requirement of a bachelor's degree for beginning positions in purchasing. The emergence of majors in purchasing or materials management at several prominent colleges and universities reinforces the trend. However, no one type of educational background is appropriate for all purchasing positions, and the lack of a bachelor's degree does not mean that the doors are closed to those who have significant related work experience.

An educational background in purchasing provides broad theoretical knowledge of the field and how it relates to business or organizational activities. Further knowledge of the product or services is a matter of training or work experience in most cases. For those entering college or in the process of selecting their majors, the National Association of Purchasing Managers offers the following suggestions.

The ideal college curriculum consists of a concentration in business administration with a major in purchasing or materials management. Realizing, however, that many colleges do not offer such majors, the NAPM suggests the following courses:

• Basic Economics
  
  
• Principles of Accounting
  
  
• Business Communications
  
  
• Commercial Law
  
  
• Statistics and Quantitative Methods
  
  
• Computer Applications in Business
  
  
• Business Organization and Management
  
  
• Managerial Finance
  
  
• Fundamentals of Marketing
  
  
• Marketing Research
  
  
• Production Planning and Control
  
  
• Cost Accounting

The NAPM also suggests the following specific courses, if they are available:

• Principles of Purchasing
  
  
• Negotiation and Cost Analysis
  
  
• Contract Administration
  
  
• Purchasing Research
  
  
• Purchasing and Materials Management Strategy
  
  
• Government Purchasing
  
  
• Materials Management
  
  
• Traffic Management

It is also strongly suggested that a person take courses in his or her areas of strongest interest. Those wishing to become involved with purchasing in manufacturing may want to take some engineering courses while others who are interested in the retail area may take courses in foods, textiles, or merchandising.

Again, one of the principal requirements for a purchasing professional is a thorough knowledge of the products or services that he or she is concerned with. Almost without exception, purchasers gain this knowledge through a variety of ways after they have received their formal education. In a larger company or organization, they may be assigned to a formal training program in which they will be systematically transferred from one department to another as they gain experience in many of the functions performed by the purchasing department. Other companies use the on-the-job training method, in which new employees observe buyers at work or assist them under close supervision.

There are some positions in purchasing or buying in which adequate knowledge of the product can be gained only through extensive experience. A cattle buyer is a good example of a person whose knowledge cannot be gained through formal education or rigid training programs. Only years of experience in the field can provide the ability to make sound judgments as to the comparative value of cattle.

Another valuable source of training and continuing education is the trade associations. The National Association of Purchasing Management, for example, offers conferences, seminars, and workshops continuously and also offers a professional certification program by which one can earn the designation of certified purchasing manager. Practically every product line, from electronics to fancy foods is represented by a trade association and most hold national and regional trade shows in which hundreds of suppliers exhibit their products. These trade shows provide the buyers with the opportunity to see many competitive products at one time with a minimum of travel. Individual industries, such as home builders, are also represented by trade associations. They also hold national and regional conventions and trade shows and invite suppliers of products relating to their industry to exhibit. Again, buyers have an opportunity to view hundreds or even thousands of products and services under the same roof.

It is not unusual for people interested in purchasing in certain fields, such as wholesaling or retailing, to intentionally enter the industry as a member of a department other than purchasing. A potential fashion buyer, for example, may want to gain experience in textiles, clothing design, and merchandising before applying for a position as a buyer. This method of entering the purchasing field is designed to enhance the buyer's knowledge of the products and, equally as important, the market.

From one point of view, the purchasing field offers something for everyone. The products and services are so diverse, the working conditions so varied, and the knowledge and expertise covers such a broad range, that whether you are interested in chemicals or not, some aspect of purchasing should appeal to you.