When we think about working in the business realm, we might imagine people dressed nicely, working in an office, making phone calls, writing emails, generating reports, and holding meetings. While this picture is accurate to an extent, it only manages to capture the lowest resolution, leaving the details of different occupations that constitute a complete business murky. Various types of professionals filling countless roles come together to build and run successful businesses. One such role? The purchasing manager.
What does a purchasing manager do? Explore the role and responsibilities of purchasing managers — along with what is required along this career path — to learn more about the occupation and determine whether or not a future as a purchasing manager interests you.
What Is a Purchasing Manager?
The role of a purchasing manager is to oversee the procurement activities of a business or other organization. They develop and manage the process of sourcing and procuring the goods and services needed to help facilitate ongoing, uninterrupted business operations as well as optimal inventory levels and high-quality outputs.
Purchasing managers collaborate closely with suppliers, negotiating and maintaining strong relationships. They also work with individuals from other departments within their organizations to better understand the need for materials, supplies, and services. Through these collaborations, purchasing managers forecast, manage, and meet inventory needs.
Core Responsibilities of a Purchasing Manager
Purchasing managers are charged with making purchases on behalf of a business, but this process is more complex than simply pushing a shopping cart around a store. In fact, one study that examined the duties of purchasing managers identified more than 225 separate tasks.
So, exactly what does a purchasing manager do? Take a look at some of a purchasing manager’s key responsibilities:
Developing Purchasing Policies and Procedures
Purchasing managers are responsible for a business’s procurement function. This includes developing policies and procedures that outline the process, requirements, and standards for purchasing goods and services for a business. Additionally, procedures should identify processes and tools for collecting data and tracking metrics to ensure quality control, compliance, and efficiency while effectively managing costs.
Managing Supplier Relationships
Purchasing managers identify and evaluate suppliers. They are responsible for maintaining positive relationships with these suppliers to ensure quality service, timely deliveries, and uninterrupted supply chain management. Maintaining these relationships requires ongoing communication and impeccable accounts payable management. Purchasing managers also monitor supplier performance and address any challenges or problems that arise.
Negotiating Contracts
Developing solid relationships with suppliers begins with negotiating favorable contracts at the beginning of a relationship. During negotiations, purchasing managers work to secure the best possible delivery schedules, prices, and payment terms. As the relationship grows, strengthens, and ages, purchasing managers can sometimes leverage their reputation and relationship to negotiate even better terms upon contract renewal.
Analyzing Market Trends and Risks
Purchasing managers must keep an eye on the market and economy, too — analyzing trends and identifying potential risks or issues that could impact the supply chain. By monitoring the market and economy, purchasing managers can work to ensure their procurement strategies remain effective, despite the intricacies of the shifting market conditions.
Overseeing Inventory and Procurement Strategies
Purchasing managers are responsible for strategic planning with respect to procurement. While a purchasing plan and policies must meet a business’s operational needs by supporting optimal inventory management, the strategy should also be closely aligned with the company’s larger goals and needs. To ensure this close alignment, purchasing managers collaborate with professionals from other teams (e.g., finance, sales, and manufacturing) to help meet the needs of all departments.
Key Skills for a Purchasing Manager
The role and responsibilities of a purchasing manager can be challenging and complex. Therefore, a variety of skills, qualities, and competencies can help an individual excel in this occupation. The following are among the most vital:
- Negotiation skills – Feeling comfortable and confident while understanding the nuances of negotiation is important to securing good deals that will save your business money while bolstering operations.
- Analytical thinking – Purchasing managers deal with complex procurement systems that have the potential to impact almost every department in a business. Analytical thinking ensures professionals can understand how each facet of procurement is related to the others and how it affects overall business operations. This clear understanding enables purchasing managers to identify patterns and problems while coming up with effective solutions.
- Communication skills – Whether you’re talking with a supplier or collaborating with a department representative, relationships and clear communication are integral to successful purchasing management.
- Attention to detail – When it comes to managing supplies, services, inventory, and all the information that goes along with it, attention to detail is key to success in this role.
- Decision-making – Purchasing managers must be able to gather information, analyze data, and make good judgments for sound decision-making.
- Project management – A basic understanding of project management is crucial for purchasing managers to acquire the goods and services needed for completing jobs on time, within budget, and according to high standards.
- Technology proficiency – Purchasing managers rely on a range of advanced tools that help them collect information, organize data, and keep track of the metrics essential to the fulfillment of their duties and achievement of goals.
Tools and Technology for Purchasing Managers
Purchasing managers are tasked with keeping track of a business’s supplies and services needs while ensuring that orders are placed in a timely manner to prevent workflow disruptions and other problems. With several categories of data — often along with siloed information, delivery dates, and payment deadlines to manage — purchasing managers rely on a number of advanced technological tools to help keep the procurement processes running smoothly. Some of these tools include the following:
- Enterprise resource planning (ERP) systems – ERP systems are organization-wide data collection, storage, organization, and reporting powerhouses. Not only do they automate these tasks; they can also facilitate other processes, such as accounts payable management, scheduling, project management, and communication.
- Supplier relationship management (SRM) software – These software systems simplify supplier management with platforms for recording and evaluating supplier performance while keeping track of contracts and maintaining communication.
- Purchase order (PO) systems – Purchasing managers use these systems to consolidate the creation, tracking, and management of purchase orders across an organization.
- Procurement and sourcing platforms – In addition to automating purchase order creation, these platforms automate invoice processing and supplier management. They are also usually designed to integrate with a larger ERP system.
- Contract management systems – Multiple contracts with multiple suppliers can quickly become overwhelming to manage. These systems support contract management by tracking spending and helping maintain contract compliance.
- Data analysis tools – Various tools can help analyze data and track key performance indicators related to purchasing management — such as cost metrics, supplier performance metrics, and process efficiency metrics.
Typical Work Environment
Frequently, purchasing managers work in traditional office environments with fairly standard working hours (i.e., 9 a.m. to 5 p.m. Monday through Friday). They can expect to collaborate with professionals from other departments (like operations or finance) and project managers.
A purchasing manager’s work environment and hours can vary depending on the industry and specific business. Sometimes, purchasing managers work more than 40 hours per week during a busy season, or they might be required to travel to attend conferences or meet with vendors and suppliers.
Purchasing Manager Career Outlook
Overall, the career outlook for purchasing managers is optimistic. The United States Bureau of Labor Statistics (BLS) projects faster-than-average growth for purchasing manager occupations across industries (at 7%), with an estimated 41,400 new positions expected to be created between 2023 and 2033.
How to Become a Purchasing Manager
While there is no singular path to becoming a purchasing manager, the following steps can help you gain the proper skills and credentials while preparing to become a purchasing manager.
Earn a Bachelor’s Degree
One of the most impactful steps you can take toward becoming a purchasing manager is to earn a bachelor’s degree in a relevant field — such as business administration with a focus on supply chain management, procurement, or operations.
Additionally, for management positions, many employers prefer candidates with graduate-level degrees. While it may not be needed early in your career, earning a Master of Business Administration (MBA) could help you access more professional opportunities. Earning a bachelor’s degree can lay the essential academic and professional groundwork, helping prepare you for the rigors of an advanced program like an MBA.
Gain Entry-Level Experience
Landing a management-level position without relevant work experience is virtually unheard of. So, once you have your degree (or while you’re working to earn a degree online), you can gain work experience in entry-level positions as a purchasing agent, buyer, or procurement specialist, for instance.
Develop Industry-Specific Skills
Work on developing specific skills for the purchasing manager role (such as cost analysis, inventory management, and negotiation). Also consider the field in which you are working (or want to be working), and gain knowledge, experience, and skills unique to that industry.
Obtain Professional Certifications (Optional)
Earning relevant professional certifications* can help strengthen your resume and further hone your skills. For example, certifications in supply chain management or purchasing management might be helpful.
*Johnson & Wales University (JWU) Online does not endorse any specific certification; do your due diligence when determining which certifications to pursue and which to pass. Research purchasing manager job postings to get a better feel for the specific certifications valued by different industries.
Advance to Management Roles
As you gain experience and credentials, you may begin applying for increasingly advanced positions until you reach the management level.
Is a Career as a Purchasing Manager Right for You?
Do you enjoy negotiating, making great deals, and solving complex problems with data-driven thinking?? Then a career in purchasing management might be an ideal fit for you. While studying to earn a bachelor’s degree in business, you will become more familiar with the range of roles and responsibilities of purchasing managers as well as other types of business professionals.
Take the First Step: Study Business With JWU Online
If business interests you, we encourage you to learn more about the online Bachelor of Science in Business Administration – Operations and Supply Chain Management through JWU Online. This degree program is designed to provide students with a broad overview of a variety of relevant topics while focusing on operations and supply chain management through coursework in purchasing, logistics, quality control, operations management, and more.
For more information about completing your degree online, complete the Request Info form, call 855-JWU-1881, or email [email protected].