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Purchasing Manager

Purchasing managers attempt to secure the best merchandise at the lowest cost for their company or organization. Purchasing managers determine the type of goods or services that need to be purchased, choose the suppliers for those goods and services, and ensure that orders are filled correctly and at the appropriate time. They determine suppliers based on criteria such as price, quality, service support, availability, reliability, and selection. They research this information, as well as the reputation and history of the suppliers. This is done over the Internet, or in person, such as at trade shows, conferences, or at a supplier's production facility. Once a supplier is determined, purchasing managers award a contract that often lasts several years. Purchasing managers usually oversee the more important or complex purchases and delegate the purchase of less crucial goods and services to their staff of purchasing agents.

Acquisitions Procurement Management

Job Skills

Purchasing managers need to be proficient in word processing, spreadsheet software, and the Internet. Besides good communication skills and the ability to analyze data, other skills include mathematical knowledge, knowledge of supply-chain management, and the ability to negotiate and perform financial analyses. They should be excellent decision-makers and planners, and also possess leadership qualities.

Income

In 2002, medical and health services managers earned a median annual salary of $59,890. Earnings ranged from the lowest 10 percent, who earned less than $32,330, and the highest 10 percent, who earned more than $10,140.

Training and Education

Purchasing managers begin their careers by obtaining a degree and getting hired usually as some sort of assistant. The type of degree required depends on the size of the organization that hires them. Large wholesale and retail stores usually require applicants to have a bachelor's degree with a emphasis on business, while manufacturing firms prefer candidates with a bachelor's or master's degree in engineering, business, economics, or an applied science. However, for those who wish to advance to management positions, a master's degree is essential. New employees spend 1 to 5 years learning their specific business from experienced employees, and gradually receive greater responsibility.

Employment

In 2002, purchasing managers held about 108,000 jobs. 42 percent were employed in wholesale trade and manufacturing, 15 percent worked in retail, and the rest worked in service establishments, such as hospitals and government.

Job Outlook

Between 2002 and 2012, the number of purchasing managers is expected to increase more slowly than the average. Purchasing information is now easier to obtain, thanks to electronic commerce over the Internet. This has greatly increased the productivity of purchasing managers and slowed demand for these positions. In addition, companies can now deal with fewer suppliers on a less frequent basis, due to the introduction of exclusive supply contracts and log-term contracting.

Please visit our sections on Business Administration Degrees and MBA Programs for more information on becoming a Purchasing Manager.


Purchasing Manager Training

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