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
At [Your Company Name], we’re dedicated to our customers, which is why we’re hiring a purchasing manager. In this position, you will direct and maintain the purchasing function to assure the timely, economical purchase of raw materials, parts, equipment, and operating supplies. You must be able to establish and implement procedures for procuring materials and services in accordance with required specifications.
You will also need to establish policies to assure timely and accurate processing of materials from receipt through requisitioning to production. As an ideal candidate, you should have proven experience managing purchasing activities and processes, excellent leadership qualities, and proven experience negotiating with suppliers.
Typical duties and responsibilities
- Demonstrates effective communication and problem-solving skills
- Manages purchasing clerks including hiring, training and supervising
- Administers, reviews, manages, files, evaluates, analyzes, and negotiates contracts
- Prepares and evaluates orders and bids and recommends vendors, etc.
- Ensures contracts comply with regulations
- Evaluates vendors to ensure performance is aligned with established specifications
- Develops and implements purchasing and contract management instructions, policies, and procedures
- Maintains accurate purchasing records
- Reviews and monitors capital purchases to ensure compliance with company policies and procedures
- Identifies opportunities for cost savings
- Continually improves purchasing methods and processes
- Responds to inquiries from internal and external sources as pertains to purchasing
- Prepares and presents market conditions and merchandise cost reports
- Resolves grievances with vendors, contractors, and suppliers
- Negotiates with suppliers
- Coordinates removal or disposal of surplus materials
Education and experience
- Bachelor’s degree in business administration, accounting, economics, or related field
- 3+ years of experience in the purchasing-related field
Required skills and qualifications
- In-depth knowledge of inventory and supply chain management
- Supervisory or management experience
- Intermediate proficiency using Microsoft Office and purchasing software
- Exceptional written and verbal communication skills
- Excellent negotiation skills
- Strong planning and organizational skills
Preferred qualifications
- Experience with sourcing and vendor management
- Good business sense and strong interest in market dynamics
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.
| Location | Salary Low | Salary High |
|---|---|---|
| Phoenix, Arizona | $73,600 | $99,550 |
| Los Angeles, California | $83,000 | $112,250 |
| Denver, Colorado | $69,200 | $93,600 |
| Washington, DC | $84,300 | $114,050 |
| Miami, Florida | $68,900 | $93,200 |
| Orlando, Florida | $63,550 | $85,950 |
| Tampa, Florida | $64,150 | $86,800 |
| Atlanta, Georgia | $67,300 | $91,050 |
| Chicago, Illinois | $77,350 | $104,650 |
| Boston, Massachusetts | $83,650 | $113,200 |
| Minneapolis-St.Paul, Minnesota | $66,650 | $90,200 |
| New York City, New York | $88,050 | $119,150 |
| Philadelphia, Pennsylvania | $71,700 | $97,000 |
| Dallas, Texas | $69,800 | $94,450 |
| Houston, Texas | $69,500 | $94,050 |
| Seattle, Washington | $80,500 | $108,950 |
| National Average | $62,900 | $85,100 |
Typical work environment
Most purchasing managers work in office settings. They sometimes have to travel to meet with vendors and purchasers. Those working for global organizations might be required to travel outside the country.
Typical hours
Purchasing managers usually work 40 hours per week during normal business hours. Some might work more than 40 hours on occasion.
Available certifications
Purchasing managers work in a wide range of industries, and many institutions offer certifications. Here are three of the best certifications available for purchasing managers:
- Certified Purchasing Professional (CPP). The CPP program is designed for professionals who have demonstrated the skills needed to successfully implement improved purchasing and supply chain practices in an organization. Administered by the American Purchasing Society, the CPP is available to all professionals working in purchasing, materials management, or in an executive position who are also members of the American Purchasing Society or who work for a company that holds a valid membership in the Society.
- Certified Professional in Supply Management (CPSM). The CPSM credential is designed to help supply chain and procurement professionals drive value in their organizations. Offered by the Institute for Supply Management (ISM), the CPSM demonstrates your advanced skills and understanding of the supply chain from end to end. Major competencies covered include sourcing, negotiation, legal and contractual, supplier relationship management, and supply chain strategy. Eligibility requirements are three years of full-time, professional supply management experience with a bachelor’s degree or five years of supply management experience without a degree.
- Certified Supply Chain Professional (CSCP). The CSCP is managed by the Association for Supply Chain Management and is designed to equip you with end-to-end supply chain knowledge to help your business stay competitive in today’s economy. The certification works across a broad range of industries, including manufacturing, education, government, healthcare, and distribution. To be eligible, you must have either 3 years of business experience, a bachelor’s degree, or an active CPIM, CPIM-F, CIRM, SCOR-P, CPM, CPSM, CTL, or CLTD certification.
Career path
To start on the path to becoming a purchasing manager, you’ll need a bachelor’s degree in business administration, accounting, or a related field. Purchasing managers typically begin their careers as buyers or purchasing agents and receive on-the-job training, learning the basics of procurement and how to negotiate with suppliers. Many purchasing managers are promoted from within an organization, and most have at least three years of experience in a relevant area. Earning a professional certification is a great way for purchasing managers to improve their skills and stand out from the competition.
US, Bureau of Labor Statistics’ job outlook
SOC Code: 11-3061
| 2020 Employment | 74,400 |
| Projected Employment in 2030 | 79,000 |
| Projected 2020-2030 Percentage Shift | 6% increase |
| Projected 2020-2030 Numeric Shift | 4,600 increase |
Position trends
The effects of COVID-19 are still being felt worldwide, and organizations are continuing to recover from the drastic impact on global supply chains. This is forcing companies and industries to rethink and overhaul their supply chain models. They must now consider how to build flexibility into the supply chain to accommodate disruptions like the one that occurred in 2020 in order to reduce supplier exposure and risk. Especially hard hit was the long-distance, international supply chains. Adding a level of resilience to these supply chains, such as working with a much wider range of suppliers and working with a greater number of smaller, regional start-ups can help ease the impact of another global hit to the supply chain.
With the continued push toward a more eco-friendly world, purchasing managers will need to build in initiatives to improve environmental, social, and economic performance, rather than only focusing on monitoring supplier compliance. Regardless, there will be an increase in purchasing managers, making this a stable career choice.
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?
