Purchasing ManagerJob Description, Salary, Career Path, and Trends
Purchasing managers are responsible for purchasing supplies, equipment, products, services, and materials for a company. They typically manage a purchasing department where they oversee and approve purchases. They develop strategies based on company needs and must stay within the company and other guidelines, regulations, and restrictions. They track purchases in an effort to reduce costs and increase effectiveness. Purchasing managers must be strong leaders, be good decision-makers, and have excellent negotiation skills to secure purchases at the best prices and terms. They need good communication skills in dealing with internal management and outside suppliers and vendors.
Purchasing managers work to mitigate risks, especially with large purchases. They must have a knack for finding reliable partners and building and maintaining strong relationships with suppliers, so they need good interpersonal and networking skills. They must be aware of company needs and should be able to access the appropriate quantity of goods and services to avoid any gaps in production. Sound judgment and excellent organizational skills are essential. Purchasing managers work in all industries.
Sample job description #1
If you are a person who enjoys negotiating cost-effective purchasing strategies and fostering long-term vendor relationships, consider a Purchasing Manager position with ABC Company! Strong communication and independent decision-making skills coupled with ERP purchasing experience would make you the perfect candidate for this position.
Performs quality control of all incoming product and materials
Develops sourcing strategies and purchasing strategies within company procedures
Creates Purchase Orders
Assists in the preparation of bidding documents
Monitors all purchase requisitions and handle adjustments with vendors
Communicates with the Production and Service teams
Works with engineering and other internal departments as needed
Develops and maintains a professional business rapport with vendors
Negotiates pricing, terms, lead times
Works with co-workers and vendors to resolve items
Performs risk management assessments
Degree in Business Management, Supply Chain Management, or Procurement and Contractual Management
Certified Supply Chain Professional (CSCP) a plus
Ability to maintain a high quality of work while presented with competing tasks in a fast-paced environment
Strong Microsoft Office Skills
Experience with ERP purchasing software equivalent to Epicor, SAP, or NetSuite
Independent decision-making skills
Strong interpersonal communication and negotiation skills
Sample job description #2
What you will be doing
You will work with multiple functions to focus on the overall purchasing need for the company along with partnering with our Operations teams to drive our order management process. In supporting these functions, you will be accountable for all Purchase Order creation, and all inbound order acceptance, resolution and processing including validation, organization, and accuracy of these deliverables.
A day as a purchasing manager:
Measure food cost percentage
Supervise and develop an existing team: Buyer(s), Admin Clerk(s), and Receivers
Develop and streamline process, e.g. accessibility, availability, cost, and quality assurance
Assist in food presentations and develop in conjunction with management and manage pricing structure to meet food cost goals
Guarantee systems for best price/value for products such as: High value fish, meat, poultry, specialties, dairy fruits, and produce. as well as basic F&B supplies
Create and monitor reports with variable year and seasonality prices input in order to create most cost effective high-end menus together with corporate executive chefs
Analyze procurement and financial data in conjunction with the Unit Controller for opportunities including supplier rationalization, tenders, aggregation, and specification alternatives
Attend food tasting sessions for new products
Maintain contracts, buy side related paperwork, and related files
Develop sourcing plans and budgets, track results as necessary to meet contract obligations
Review Purchase requisitions, obtain competitive quotes, and plan Purchase Orders
Monitor and resolve supplier performance and business issues that may occur to ensure food safety compliance, HACCP regulations, and FDA regulations
Establish cross-functional sourcing targets such as redesign improvements and material and process standardization
Manage day-to-day supplier communications
Establish and negotiate agreements and maintain business relationships with the established supplier to assure on-time delivery, favorable pricing, and capacity allocation and Purchase terms
What you have:
Awareness of the operational sequences
Ability to work well within the team as well as independently
Planning, co-ordination, communication, and leadership skills
Three (3) to five (5) years in related purchasing or contract purchasing field
Background in institutional and contract food purchasing
Proficient in using Microsoft: Word, Excel, Outlook, purchasing software preferred
System knowledge MS Navision
Contract and negotiation skills
Hazard Analysis Critical Control Point (HACCP) knowledge required
Ability to reduce complex issues to basic components
Ability to work well in a fast paced environment and with a diverse clientele that requires a hands on approach to our guests needs
Ability to complete assigned tasks within the given time in order to meet strict deadlines
Responsible for sourcing equipment, goods and services, and managing vendors
Perform strategic procurement activities, search for better deals, and find more profitable suppliers
Track and report key functional metrics to reduce expenses and improve effectiveness
Craft negotiation strategies and close deals with optimal terms
Forecast price and market trends to identify changes of balance in buyer-supplier power
Seek and partner with reliable vendors and suppliers
Determine quantity and timing of deliveries
Monitor and forecast upcoming levels of demand
Education and/or work experience requirements:
Knowledge of purchasing raw materials and key components for manufacturing process
Proven working experience as purchasing lead/manager
Familiar with sourcing and vendor management
Interest in market dynamics along with business sense
A knack for negotiation and networking
Working experience of vendor management software
Ability to gather and analyze data and to work with figures
Knowledge of process-oriented operations and/or related industry
Knowledge of financial, accounting, and project management principles and practices
Experience working with manufacturing based technology
Ability to effectively communicate with other managers/employees
Average salary and compensation
The average salary for a purchasing manager is $74,000 per year in the United States, with total compensation of $80,000 including annual incentives. Salary will vary depending on the level of experience, education, and geographical location.
Los Angeles, California
New York City, New York
Sample interview questions
What are your criteria for selecting the most ideal suppliers and vendors?
Do you have experience purchasing both raw materials and finished goods?
What are some negotiation tactics you employ when dealing with suppliers?
What are some projects have you worked on while leading a purchasing team?
Can you give an example of a cost-savings measure you were able to employ?
Which vendor management software are you familiar with?
How do you resolve disagreements with vendors?
Can you give an example of a purchase that was unsuccessful? What did you learn?
How do you ensure the success of your team?
What are the biggest challenges in the industry right now?
How do you ensure that your team complies with national and international codes of conduct?
How do you ensure delivered products meet specifications?
How do you ensure that important orders aren’t delayed? What do you do if they are?
What’s your sourcing strategy for accessing new suppliers?
How do you evaluate a supplier?
How do you document purchase agreements?
How would you go about canceling a vendor account?
How do you process purchase requisitions?
How do you monitor and maintain purchasing budgets?
How would you handle a consistently underperforming buyer or purchasing agent?
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