Purchasing management involves directing the flow of goods and services, sourcing reliable suppliers, negotiating contracts, and managing budgets and personnel. Professionals in this field must have knowledge of supply chain, trade and tax laws, and transportation and logistics issues. They must also be good decision-makers, negotiators, and have good leadership skills. Entry-level positions require a college degree and some product knowledge, while higher positions often require a master’s degree in a business-related subject. Buyers must understand the trends and economic conditions that influence consumers’ purchasing decisions. Follow-up is also important to ensure that purchased products display well and attract consumers.
Purchasing management directs the flow of goods and services in a company and manages all supplier contact data. To be effective, it requires knowledge of supply chain, trade and tax laws, billing and inventory procedures, and transportation and logistics issues. While a thorough understanding of the products and services to be purchased is essential, professionals in this field must also be able to plan, execute, and oversee the purchasing strategies that help their business be more profitable.
Sourcing reliable suppliers is a crucial part of purchasing management. Managers, agents and buyers usually learn about new products and services from internet searches, trade shows and conferences. They meet with potential suppliers at their facilities whenever possible. Foreign language skills can be useful for sourcing suppliers in other countries. People working in this industry should always evaluate potential suppliers in terms of the supplier’s ability to deliver quality merchandise at an appropriate price and on time.
Procurement management professionals must be good negotiators, understand technical product information, have good math skills, understand spreadsheet software, understand marketing methodology, and be exceptional decision makers. Good leadership skills are required to advance in this field, and higher positions often require a master’s degree in a business-related subject. Entry-level positions, such as junior buyers, assistant buyers, and sales assistants, often require a college degree and some product knowledge.
Larger distributors may apply for a college degree for entry level jobs in this field. Employees are typically their training and learning in sales, then overseeing and tracking invoices and inventory. Professional designations include Certified Purchasing Professional (CPP) in the United States and Certified Professional Purchaser (CPP) in Canada.
Purchasing managers, buyers and materials managers control budgets, manage personnel and can analyze procurement methods and negotiate contracts with suppliers. These professionals must understand tax laws, buying trends, ethics and global outsourcing issues. Buyers and Purchasing Agents usually handle purchasing activities specifically, while Managers usually supervise others, including Purchasing Agents. Titles and duties vary greatly between industries and employers, however.
Buyers need to be able to select the products that consumers will want to buy, so they need to understand the trends and economic conditions that influence consumers’ purchasing decisions. Those working at small stores may be responsible for purchasing the store’s entire inventory, while people working for larger operations may focus on a few product lines.
Merchandise managers can work with an advertising team to create a campaign for the merchandise they buy. Follow-up is an important part of this job, as responsibility does not end with the purchase of goods. For example, managers need to ensure that purchased products display well to attract consumers. Buyers need to track customer requests for new products and determine how well they sell the goods.
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