Purchasing Manager/Agent

Nature of the Work:

Purchasing managers, buyers, and purchasing agents make up a key component of a firm's supply chain. They buy the goods and services the company or institution needs to either resell to customers or for the establishment's own use. Wholesale and retail buyers purchase goods for resale, such as clothing or electronics and purchasing agents buy goods and services for use by their own company or organization such as raw materials for manufacturing or office supplies. Purchasing agents and buyers of farm products purchase goods such as grain, Christmas trees, and tobacco for further processing or resale. Purchasing professionals consider price, quality, availability, reliability, and technical support when choosing suppliers and merchandise. They try to get the best deal for their company, meaning the highest quality goods and services at the lowest possible cost to their companies. In order to accomplish these tasks successfully, purchasing managers, buyers, and purchasing agents study sales records and inventory levels of current stock, identify foreign and domestic suppliers, and keep abreast of changes affecting both the supply of, and demand for, needed products and materials.

In large industrial organizations, a distinction often is drawn between the work of a buyer or purchasing agent and that of a purchasing manager. Purchasing agents commonly focus on routine purchasing tasks, often specializing in a commodity or group of related commodities, such as steel, lumber, cotton, grains, fabricated metal products, or petroleum products. Purchasing agents usually track market conditions, price trends, and futures markets. Purchasing managers usually handle the more complex or critical purchases and may supervise a group of purchasing agents handling other goods and services. Whether a person is titled purchasing manager, buyer, or purchasing agent depends more on specific industry and employer practices than on specific job duties.

Working Conditions:

Most purchasing managers, buyers, and purchasing agents work in comfortable offices. They frequently work more than the standard 40-hour week, because of special sales, conferences, or production deadlines. Evening and weekend work also is common, before holiday and back-to-school seasons for those working in retail trade. Consequently, many retail firms discourage the use of vacation time during peak periods.

Buyers and merchandise managers often work under great pressure. Because wholesale and retail stores are so competitive, buyers need physical stamina to keep up with the fast-paced nature of their work.

Many purchasing managers, buyers, and purchasing agents travel at least several days a month. Purchasers for worldwide manufacturing companies and large retailers, as well as buyers of high fashion, may travel outside the United States.

Education:

Qualified persons may begin as trainees, purchasing clerks, expediters, junior buyers, or assistant buyers. Retail and wholesale firms prefer to hire applicants who have a college degree and who are familiar with the merchandise they sell and with wholesaling and retailing practices. Some retail firms promote qualified employees to assistant buyer positions; others recruit and train college graduates as assistant buyers. Most employers use a combination of methods.

Educational requirements tend to vary with the size of the organization. Large stores and distributors prefer applicants who have completed a bachelor's degree program with a business emphasis. Many manufacturing firms put yet a greater emphasis on formal training, preferring applicants with a bachelor's or master's degree in engineering, business, economics, or one of the applied sciences. A master's degree is essential for advancement to many top-level purchasing manager jobs.

Regardless of academic preparation, new employees must learn the specifics of their employers' business. Training periods vary in length, with most lasting 1 to 5 years. In wholesale and retail establishments, most trainees begin by selling merchandise, supervising sales workers, checking invoices on material received, and keeping track of stock. As they progress, retail trainees are given increased buying-related responsibilities.

Job Outlook:

Overall employment of purchasing managers, buyers, and purchasing agents is expected to grow slower than the average for all occupations through the year 2014. Offsetting some declines for purchasing workers in the manufacturing sector will be increases in the services sector. Companies in the services sector, which have typically made purchases on an ad hoc basis, are beginning to realize that centralized purchasing offices may be more efficient. Also, many purchasing agents are now charged with procuring services that were traditionally done in-house in the past, such as computer and IT (information technology) support in addition to traditionally contracted services such as advertising. Demand for purchasing workers will be limited by improving software, which has eliminated much of the paperwork involved in ordering and procuring supplies, and also by the growing number of purchases being made electronically through the internet and electronic data interchange (EDI). Despite slower-than-average growth, some job openings will result from the need to replace workers who transfer to other occupations or leave the labor force.

Employment of purchasing managers is expected to grow more slowly than average. The use of the Internet to conduct electronic commerce has made information easier to obtain, thus increasing the productivity of purchasing managers. The Internet also allows both large and small companies to bid on contracts. Exclusive supply contracts and long-term contracting have allowed companies to negotiate with fewer suppliers less frequently.

Earnings:

See link below for salary information.

More Career Info:

The following link will take you to the Bureau of Labor Statistics’ Occupational Outlook Handbook (2008-2009). This handbook provides additional information on training and education, employment, job prospects, and more for hundreds of different types of jobs. The Occupational Outlook Handbook is a nationally recognized source of career information, designed to provide valuable assistance to individuals making decisions about their future work lives.

http://www.bls.gov/oco/ocos023.htm

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