A purchasing manager is responsible for orchestrating the buying of products, services or materials for an organization. As an integral position in the supply chain, purchasing managers are often in charge of vetting vendors, assessing supplier and staff performance and analyzing costs to find alternative solutions.
Purchasing managers typically begin as purchasing agents, sourcing and buying products and services on behalf of their organization. After obtaining experience, they can move up to the position of manager where they will lead a team of agents.
What Does a Purchasing Manager Do?
At a high level, purchasing managers are responsible for procurement — the process of bringing in products and services for a business to use or sell to consumers. Since they operate in a managerial capacity, purchasing managers oversee the efforts of procurement staff.
These business leaders are involved in supply chain management, partner performance evaluation, cost analyses and staff supervision. Some responsibilities of a purchasing manager include:
- Negotiating contracts and agreements with vendors to secure the most advantageous rates and terms for their business;
- Undertaking vendor audits and risk management assessments to protect the business’s investment and supply the highest-quality goods and services to consumers;
- Visiting distribution hubs and supplier plants to ensure adherence to operating agreements and compliance regulations;
- Inspecting inventory and assessing service competency so the business can optimize its procurement strategies and spending;
- Designing standards and guidelines for company sourcing, and then enforcing those best practices through procurement;
- Coordinating the activities of buyers, purchasing agents and other staff within the procurement department;
- Managing vendor relationships by regularly connecting with clients.
Furthermore, as laws promote sustainable sourcing, purchasing managers play a proactive role in helping companies comply with ESG regulations. This makes purchasing managers an important part of the supply chain and helps them guide a company’s direction in unique ways.
How Much Does a Purchasing Manager Make?
The U.S. Bureau of Labor Statistics (BLS) provides a full report of the expected earnings and employment outlook for purchasing professionals. In 2021, purchasing managers saw median annual earnings of $127,150. The lowest 10% made less than $77,310 a year, while the upper 10% earned over $206,540. Purchasing managers working in company and enterprise management were among the top earners, with government workers close behind.
Where Do Purchasing Managers Work?
Purchasing managers work across a variety of sectors, both public and private. According to the BLS, 23% of purchasing managers work in manufacturing. Companies that assemble products on-site but ship in parts from elsewhere need a purchasing manager to stay on top of the supply chain.
However, there are also many purchasing manager jobs in wholesale trade, corporate management and the government. Wholesale operations rely on skilled purchasing managers to find reliable, cost-effective partners, while enterprise businesses turn to purchasing managers for better organization and spending allocation. Those same reasons make these professionals highly sought after in government, where cost efficiency is a high priority.
While purchasing managers usually work full-time in an office setting, traveling to trade shows and conferences provides the opportunity for purchasing managers to forge new business relationships and stay ahead of industry trends.
What Experience is Necessary To Become a Purchasing Manager?
Given the level of responsibility someone in this position assumes, an aspiring purchasing manager should cultivate a certain set of skills and qualities through related academic and professional experiences.
Skills and Qualities of a Purchasing Manager
To effectively carry out their role, purchasing managers require a variety of skills, including:
- Negotiation skills: A significant part of the duties of a purchasing manager includes making deals for the best price, quality and delivery schedule, so negotiating is an important ability.
- Analytical skills: Purchasing managers need to be able to analyze financial reports and other data to make informed decisions regarding suppliers and products.
- Communication skills: A purchasing manager needs to have a good line of communication between their team and the vendors they work with, and they must also be able to explain their decisions and reasoning to organization stakeholders.
- Leadership and organizational skills: Purchasing managers need to be able to coordinate the efforts of their team, as well as multiple orders and delivery schedules, which requires leadership and organization.
- Supply chain management knowledge: To make effective and wise purchasing decisions, a purchasing manager needs to understand how supply chains work, including logistics and production processes.
Depending on the specific industry, purchasing managers may also need a special understanding of industry-specific products or market details.
Education
To become a purchasing manager, companies usually require applicants to hold a bachelor’s degree and a few years of work experience in procurement. The BLS also notes that a bachelor’s degree in business, finance or supply management can help aspiring purchasing managers enter the industry.
A master’s degree isn’t a prerequisite for this six-figure career; with the right experience, professionals can work their way to a purchasing management role with just a bachelor’s degree. Therefore, an undergraduate program geared toward a career in purchasing — such as a Bachelor of Science in Finance — will teach skills that can help obtain and succeed in a purchasing career.
Alternatively, a B.S. in Industrial Distribution or Human Resources can prepare applicants to tackle supply chain and personnel management on their path toward a purchasing management career.
Certifications
While not all employers require professional certification, it can be advantageous to get registered as a certified purchasing manager. With the right combination of work experience, education and industry involvement, you can take an exam to earn designations such as the American Purchasing Society’s Certified Purchasing Professional (CPP) or the Association for Supply Chain Management’s Certified Supply Chain Professional (CSCP).
Work Experience
Before reaching a management position, professionals typically spend at least five years working in procurement as a buyer or purchasing agent. These workers can move up to a transitional role such as assistant purchasing manager before advancing to a full purchasing manager.
Sources:
Supply Chain Brain, “The Procurement Managers Guide to Ethical and Sustainable Sourcing”
U.S. Bureau of Labor Statistics, “Purchasing Managers, Buyers, and Purchasing Agents: Pay”
Association for Supply Chain Management, “Transform your future. your business. our world.”