A procurement director develops and implements company policy, negotiates large purchases, and responds to complaints related to breach of contract law. Training includes a four-year post-secondary education program and a minimum of 10 years experience. The director is responsible for establishing policies and procedures, negotiating contracts, and resolving disputes.
A procurement director is responsible for developing and implementing company policy, providing expert advice on all purchasing and contract decisions, negotiating large purchases, and responding to any complaints related to breach of contract law. Procurement is another term for purchasing goods and services. The Procurement Director typically reports to the Finance Manager or Data Processor, which generally means that the department is considered part of Financial Services.
The recommended training to become a procurement manager includes a four-year post-secondary education program in business, accounting, or purchasing. The Procurement Director role is typically achieved after a minimum of 10 years experience as a procurement officer or manager. There are several procurement associations that provide additional training and a professional designation to candidates. These designations vary by state and are granted based on a combination of education and experience.
The primary responsibility of a procurement manager is strategic and related to governance. It is expected that he will establish a set of policies and procedures that form the basis for all interactions between the company and suppliers. Levels of internal approvals, issuance of purchase orders, terms and conditions, and a number of related items are determined by the Procurement Director.
Contract law is quite complicated and much of it directly pertains to contract “A” and “B.” These two types of contracts are used to explain the initial verbal agreement between the buyer and the seller and the final written agreement. Both are legally binding, and actions and communications that occur between these two dates are critical to any dispute resolution process. It is the Procurement Director’s responsibility to stay updated on the latest legal decisions and to provide expert advice to the company, based on that information.
Large purchases are typically negotiated by the director, on behalf of the company. These trades are usually multi-year contracts with significant dollar value. The director is responsible for meeting with internal resources to determine their requirements, discuss budget, timelines, delivery dates and all other elements that need to be included in the contract. Depending on the industry, the purchasing manager may not have final signing authorization for large contracts. The organizational structure may require final approval of any contract by a board of directors, chief financial officer or company president.
In the event of commercial disputes relating to contracts or purchases, the purchasing director is responsible for the initial review. Many disputes can be resolved through qualified negotiations before they become a legal matter. Any lawsuit brought in connection with contract law is reviewed by the Director of Purchasing for input and comments before being reviewed by the firm’s attorney.
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