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The purchasing manager oversees all purchasing operations, including intangible purchases and maintenance costs. They must consider various factors, including budget constraints and long-term repercussions, and may need to interpret contracts and analyze price trends. Basic accounting knowledge and a background in discretionary purchasing are important qualifications.
The purchasing manager oversees all aspects of his company’s purchasing operations. He typically provides final approval of what each department purchases to support day-to-day operations. This can include acquisitions as small as staples up to large purchases of capital equipment, such as vehicles, heavy equipment, and manufacturing machinery and tools. Sourcing requests also include intangible purchases such as sales and service contracts. Operating expenses, along with maintenance and repair costs, often also require authorization from this person.
When considering purchase requisitions, the procurement manager typically needs to consider a variety of factors. Beyond simple budget constraints, it must take into account a department’s past performance and whether they have used approved funds correctly and effectively. Typically, you must analyze needs versus wants and consider the long-term repercussions of your decisions to approve or deny purchase requests. Whenever there is a denial of funds, the procurement manager is commonly required to justify her decision.
Based on the complexity of many of the requests, being the purchasing manager often requires the ability to accurately interpret contracts and determine their long-term or less apparent implications. A solid understanding of contract law can be very helpful, as can familiarity with the reputation of the companies and entities involved. A person in this position considers more ambiguous facts and implications in making his financial allocation decisions.
Depending on the nature of the business, a person in this position may need to consider many factors in a tender application. These issues may include reviewing different grades and types of materials required to determine which choices are more cost effective without compromising quality. Analyzing price trends that may affect the timing of purchases may also be part of the job, as well as reviewing national and regional policies and procedures that may influence procurement decisions.
If the procurement manager works for a company with many subsidiaries or branches operating under a common corporate authority, bulk or cooperative purchasing may be required. This would require the procurement manager to confer with department heads to ascertain whether a very large purchase of goods or services would be profitable. He can also communicate with key personnel about alternatives to purchasing that can save money. These options may include using recycled materials or alternative energy sources which may present savings in the form of tax write-offs or rebates that offset the initially higher purchase costs.
The requirements for a procurement position manager vary by company. In general, basic training and education in accounting is beneficial, as well as having a very good understanding of procurement accounting methods. Typically no other specialized training or education is required. The most important consideration is a verifiable background in discretionary purchasing that demonstrates good judgment and fiscal responsibility.
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