Job Review for Purchasing Manager

Depending on the industry, an organization can spend more than two-thirds of their budget to purchase goods or services to support the business’ operation. Dedicated individuals are responsible to ensure that this supply chain process of picking and buying stuff is executed smoothly. A purchasing manager leads a department that is in charge of procuring goods and services for use or reselling by their business. To understand this job better, this week’s #JobReview will give you a glimpse of the daily tasks a purchasing manager does.

Job Overview

Purchasing managers research suppliers, negotiate deals, inspect product quality, and frequently oversee purchasing agents and purchasers. In smaller businesses, the purchasing manager may also function as an agent or buyer. This job position requires excellent managerial abilities as well as a cross-functional grasp of operations management, logistics, and even information technology. 

Purchasing Manager = Supply Chain Manager?

Many people think that a purchasing manager is also a supply chain manager and that these two terms are simply synonymous. Although these two jobs look similar at a glance and they actually work together, they are different. Supply Chain Manager is in charge of the overall flow of materials as they are transformed into end products to be made available to customers. Meanwhile, a purchasing manager is in charge of purchasing the goods authorized by the supply chain manager. Purchasing manager is also in charge of purchasing supplies that may not be directly related to the production process, such as internal office supplies and equipment.

Supply chain manager informs the purchasing manager on the company's total supply and demand, so that they can optimize workflows by making necessary purchases. These two managers frequently collaborate to decide which supplier best fits into the current supply chain. Once the purchasing manager seals a contract with a supplier, the supply chain manager takes into account how to transport the materials to the next phase in the manufacturing process as effectively as possible.

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Duties and Responsibilities

A purchasing manager's tasks may vary depend on the industry and the company. For large manufacturing companies, they usually have several purchasing managers at hand. Purchasing managers’ responsibilities can range from procuring production’s raw material to collaborating with manufacturers to get end products. Since this is a managerial role, a purchasing manager is also responsible to oversee purchasing staff’ work deliverables to ensure that procurement within a company goes smoothly.

Here is an example of a purchasing manager’s job descriptions from Talentvis’ job pool:

• Sourcing suppliers both local & offshore to meet optimum cost and delivery time

• Ensure materials have been ordering on time to meet the production plan

• Sourcing new supplier both local & offshore supplier to meet specification and requirements in term of cost and delivery

• Cost down negotiation and sourcing for new supplier and work with engineering team

• To trial and test for new material until start production

• Follow up with Vendor / supplier to deliver material on time with optimal stock level

• Cooperate with global inter company to get offshore material to support production

• Ensure that supplier for both local & offshore are able to catch the delivery lead time

• Annual supplier audit & evaluation

• Issue PR / PO on time and precisely

Skills and Qualifications Required

In order to be promoted or hired as a Purchasing Manager, candidates are required to have around 4-7 years of experience in the purchasing department. This is also common if they have the experience in the same industry, since different industries have different purchasing strategies. As for the education background, purchasing managers are usually expected to have a bachelor's degree in business. Other than possessing proven qualifications like years of experience and education background, purchasing managers need to master some soft skills too. Here are some soft skills purchasing managers need to have and how they positively affect their job performance:

• Communication Skill

To connect with stakeholders and suppliers, purchasing managers must be able to communicate effectively at all levels. They can establish the precise specs, accurate expediting and stock control, as well as solid supplier connections and successful contract administration, by mastering the art of communication.

• Strategic Sourcing

As a purchasing manager, the skill to understand sourcing as strategic and sustainable as possible is a must-have. Purchasing managers need to analyze whether a supplier is qualified enough to provide resources and if they can consistently provide resources for the company. The effective analysis of resources and suppliers can be the foundation of a successful purchasing management, thus ability in this area is important.

• Negotiation Skill

Negotiation skills mean more than just the capacity to purchase something at the lowest possible price. It also includes talking about product quality, delivery dates, and future relations. A successful negotiation is one in which all parties are satisfied with the results, therefore strong negotiating abilities are strongly required to create long-term relationships with major suppliers as well as top company stakeholders.

• Relationship Management

Relationship management is essential for establishing value with suppliers and leveraging deals. A more collaborative partnership allows purchasing managers to be more inventive and gain a competitive edge. This skill is important to retain important suppliers loyal over a long period of time, resulting in the best potential costs and value increase for their company.

If you think you have what it takes to be a purchasing manager or supervisor, Talentvis provides job opportunities for you. Sign up and deposit your resume to get started. Good luck!

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