Purchasing Manager Job Description

Purchasing manager serves a variety of roles and responsibilities within the purchasing department. Most frequently, these responsibilities include:

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  • developing purchasing strategies;
  • monitoring ongoing compliance with purchasing policies and procedures;
  • preparing financial documents and reports for the organization;
  • coordinating with internal teams regarding their supply needs;
  • identifying ideal suppliers based on quality, cost, and reliability.

Additionally, the primary role of a purchasing manager is to negotiate with suppliers so that the organization can acquire the best quality products at the lowest prices. Representatives of this job have the opportunity to work in the federal government, the manufacturing industry, and wholesale and retail trade (Chalmers, 2019). For instance, global companies, such as Walmart, Oracle, Facebook, and Alvarez & Marsal, are constantly looking for experienced purchasing managers.

Knowledge, Abilities, and Skills

The purchasing manager job requires a fundamental understanding of English, mathematics, management, and administration. Also, a candidate should have the ability to increase customer satisfaction levels and meet quality standards. Moreover, knowledge in business, law, and politics is needed to help the job applicant serve their functions without legal violations. Besides, to solve complex issues and convince suppliers to deliver quality low prices goods, the purchasing manager should have well-developed analytical thinking and communication skills. When it comes to technical skills, this individual needs to apply principles, techniques, procedures, and equipment to the design and production of provided services.

Relationship with other Departments

The primary duty of a purchasing manager is to communicate with various internal teams to share and receive essential information. Even though the communication circle of the purchasing manager differs from one company to the other one, some teams communicate with this representative regularly. First, the sales department relies on the purchasing manager to make the sales by preparing the inventory. The procurement manager then informs the sales department on the lead times, which are essential for the sales department in projecting the reorder periods.

Additionally, the finance department and the purchasing department are independent of each other for various functions. The finance department relies on information from the purchasing manager concerning the status of the purchasing towards the upcoming expenditure. In turn, the purchasing manager also depends on the finance department on details about the available funds before making any purchase (Gartenstein, 2018). Lastly, the production department is connected to the purchasing manager, as they usually ask for the needed parts or raw materials on time.

Work Contexts of Purchasing Manager

Even though the daily duties of each purchasing manager depend on the rules and policies established in the specific organization, uniform tasks are performed by the majority of individuals who applied for this job. For instance, 100% of purchasing managers are required to respond to electronic mails daily, whereas around 78% of them are involved in face-to-face conversations and discussions during the working day (Chalmers, 2019). In phone communication and coordination with internal teams, approximately three-thirds of respondents perform these tasks regularly. Furthermore, 75% of purchasing managers highlight that the duration of their typical workweek is more than 40 hours (Chalmers, 2019).

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Purchasing Manager Market Analysis

As compared to other jobs, the position of purchasing manager is expected to become more perspective and essential in the future. For example, 2021 projections show that the job will see a 7 percent growth (Michigan State University, 2021). Although there is increasing use of technology replacing human labor, the procurement job is still irreplaceable by the technology.

Wage and Employment Trends

Sources from the Michigan State University (2021) indicate a projected growth of 5% in the employment of purchasing managers from 2020 to 2030. Nowadays, the average annual salary for a purchasing manager is close to $75070; salaries vary according to education levels and experience (Michigan State University, 2021). Simultaneously, the minimum salary starts from $23000 per year, whereas the maximum salary can reach over $300000 per year. Thus, purchasing manager can be considered a tremendously important job in the modern sector of business.

Typical Packages

This job position has tremendously competitive benefits packages. Nowadays, most individuals hired as purchasing managers receive health insurance, dental coverage, and retirement plans as part of their benefits packages. Also, these individuals can expect life, vision, and disability insurance included in their packages. Finally, over 50% of purchasing managers get tuition reimbursement.

Planning Document

Negotiation: I am planning to apply for the position of purchasing manager in one of the local organizations. My expectation for the salary is $25,000 per year. Considering that I am interested in the manufacturing industry, I plan to search for a job in this area.

Role: The Purchasing Manager

What issues are most important to you? (List in order of importance)

  1. Adaptation period with high-quality on-the-job training; this will help me boost my skills and competence in the job. Moreover, I can easily pick up a job from the former employee when provided with training during the adaptation period.
  2. Reputation of the organization; a company with a good reputation provides more value for services, better compensation and can be trusted. Also, it is a great achievement on my curriculum vitae which shall offer me a competitive advantage.
  3. Compensation; a high compensation will provide me with a high morale to work. It will also make me feel valued in the company.

What is your BATNA? Reservation Price? Target

BATNA

  • Alternative 1: Accept job offer as a purchasing manager job in a less competitive organization. With an added years of experience, I will secure the job in the organization of the reputation I desire with ease.
  • Alternative 2: Accept a job position of buyer or purchasing agent in the same organization. In fact, numerous people work on these job positions to gain appropriate experience before advancing to this management role.

Reservation Price: Accept job offer in a reputable organization with a lesser pay of $21000 per year.

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Target- the position of a purchasing manager in a highly reputable manufacturing company with a compensation of $23000 per year.

What are your sources of power?

  1. Information from other employees in the field; I will ask other employees in the organization for a range of the company’s compensation.
  2. Previous job offers; I will compare their offer to other job offers.
  3. A proper understanding of the field; I will quantify the labor and expertise required to salary offered.
  4. Information from other job websites; Nowadays, the average annual salary for a purchasing manager is close to $75070; salaries vary according to education levels and experience (Michigan State University, 2021).

What issues are most important to your opponent? (List in order of importance)

  1. Skills and competence; they need a candidate fluent in analytical, strong relationship-building, good forecast, and planning skills.
  2. Educational level; the most competitive candidate must have a degree in purchasing and supplies and an MBA.
  3. Experience; at least five years of experience in the purchasing field. One must have a good understanding of the field.
  4. Location; must be willing to relocate in the area near the company for easier accessibility.

What is your opponent’s BATNA? Reservation Price? Target

BATNA

  • Alternative 1: look for other applicants with experience working in the position of purchasing manager.
  • Alternative 2: Promote an employee from the purchasing agent position with lesser education qualification but relevant number of experience.
  • Alternative 3: hire an applicant with a bachelor’s degree in Procurement with relevant years of experience and offer them a lesser compensation.

Reservation Price – hire an applicant with a bachelor’s degree in Procurement with relevant years of experience and offer them a lesser compensation.

Target – hire a candidate with a degree in purchasing and supplies and an MBA, at least five years of experience in the purchasing field.

What are your opponent’s sources of power?

  1. Credibility: The Company is a reputable employer making it very competitive and desired by other candidates.
  2. Time: There is a vast amount of time to find a qualified candidate whose salary fits within their budget.
  3. Options: Numerous applicants aim to apply for this position with a lower compensation.

What is your opening move/the first strategy? Other important information?

Negotiation tactics: for successful negotiation, I will arm myself with the information of the current offers in different company so I will now what to expect.

  • I will display my expertise and qualification in the job to showcase as a highly valuable candidate.
  • I will mention a salary slightly higher than what I expect to allow room for negotiation.

Opening Move

I am excited about the job offer at your company. Having five years of experience as a purchasing agent, and a bachelor’s degree in procurement, I am confident I will be a valuable asset in the company. I have done a background research on the job and I expect to be offered a salary of $25000 per year.

Scoring System

Issue Issue
Weights (W)
Options Option
Values (V)
Weighted Value (W*V)
1. Adaptation period with high-quality on-the-job training 50% 4 weeks
3 weeks
2 weeks
1 week
100
80
60
40
50
40
30
20
2. The reputation of the organization 25% London
Chicago
Berlin
Tokyo
100
80
60
60
25
20
15
15
3. Compensation 25% $35,000
$30,000
$25,000
$20,000
100
70
70
50
50
35
35
25
100%

References

Bedey, L., Eklund, S., Najafi, N., Wahren, W., & Westerlund, K. (2019). Purchasing management. Web.

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Gartenstein, D. (2018). Relationship between purchasing and supply and other business functions. Web.

Michigan State University. (2021). Purchasing manager: Career outlook and salary. Web.

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NerdyRoo. (2022, July 17). Purchasing Manager Job Description. Retrieved from https://nerdyroo.com/purchasing-manager-job-description/

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NerdyRoo. 2022. "Purchasing Manager Job Description." July 17, 2022. https://nerdyroo.com/purchasing-manager-job-description/.

References

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