Purchasing Managers

Career summary

#No alternate titles CJ

Purchasing managers buy goods and services for their company. They decide what goods, services, and suppliers to use. They negotiate the lowest price and set up contracts.

Purchasing managers study sales records for their company and keep track of current stock. They review trade journals, catalogs, and Internet websites. They identify US and foreign suppliers of the goods they need. They evaluate suppliers based on factors such as:

• Price
• Quality
• Service

Managers stay informed of changes that may affect supply and demand in their industry. They may write reports of market conditions or other data from their research.

Purchasing managers examine goods and talk to suppliers. They visit suppliers' plants or sales centers and assess a supplier's ability to deliver quality goods on time. Managers set up contracts and place orders. They review purchase orders and contracts to be sure that suppliers keep their commitments.

Purchasing managers often work with other employees in their company to decide on purchases. They may discuss the design of products with design engineers. They may discuss quality with quality assurance engineers.

Purchasing managers who work in government award contracts for a wide range of items. They follow strict laws that apply to government contracts. These laws sometimes change, so managers must stay informed.

Managers use computers to get product and price listings. They track inventory and process simple orders. They use computers to file lists of bids and offers, and track the performance of suppliers.

Related careers

This career is part of the Business Management and Administration cluster of careers.

Related careers include:

• Buyers and Purchasing Agents
• Cost Estimators
• General and Operations Managers
• Marketing Managers
• Storage and Transportation Managers
• Supply Chain Managers

Military careers

• Purchasing and Contracting Managers

Job duties

Task list

The following list of tasks is specific to purchasing managers.

• Represent clients in creating contracts with suppliers.
• Prepare and process orders for supplies. Maintain records of supplies ordered and received.
• Evaluate suppliers based on price, quality, service, and other factors.
• Manage purchasing department budgets.
• Review purchase orders and contracts to ensure commitments are kept.
• Interview foreign and US suppliers to determine product availability and regulations.
• Research the market and identify changes that may affect supply and demand. Write reports on market conditions or other research.
• Prepare bids that require company approval.
• Develop company policies and procedures for contracts and purchasing.
• Create online purchasing systems.
• Participate in product development.
• Resolve conflicts between purchasers and suppliers.
• Attend meetings, trade shows, and conferences. Visit suppliers' plants.
• Use computers to see prices, track inventory, and keep other lists and records.
• Interview and hire employees. Supervise staff training.

Common work activities

Purchasing managers perform the following tasks. These tasks are common to many careers.

• Resolve conflicts and negotiate with others
• Establish and maintain relationships
• Get information needed to do the job
• Communicate with supervisors, peers, or subordinates
• Communicate with people outside the organization
• Make decisions and solve problems
• Analyze data or information
• Develop and build teams
• Organize, plan, and prioritize work
• Use computers
• Guide, direct, and motivate others
• Develop goals and strategies
• Coach others
• Coordinate the work and activities of others
• Update and use job-related knowledge
• Process information
• Evaluate information against standards
• Teach others
• Provide advice and consultation to others
• Convince others to buy goods or change their minds or actions
• Monitor and control resources
• Think creatively
• Explain the meaning of information to others
• Schedule work and activities
• Recruit, interview, or hire others
• Identify objects, actions, and events
• Estimate sizes, quantities, time, cost, or materials needed
• Document and record information
• Judge the value of objects, services, or people
• Monitor events, materials, and surroundings
• Perform administrative tasks

Work requirements

Working conditions

In a typical work setting, purchasing managers:

Interpersonal relationships

• Have a high level of social interaction. They work closely with many different people.
• Communicate with coworkers and suppliers daily by telephone, e-mail, or in person.
• Are responsible for the work done by the purchasing agents they supervise.
• Deal with unpleasant, angry, or discourteous suppliers on a weekly basis.
• Are responsible for the health and safety of coworkers.
• Write letters and memos on a weekly basis.
• Work in a group or as part of a team.

Physical work conditions

• Nearly always work indoors. May on occasion work outdoors when visiting suppliers' plants.
• Work somewhat close to other people. They may share office space with coworkers.

Work performance

• Must be sure that their work is exact. Errors could have serious financial consequences for the company.
• Repeat the same activities, such as negotiating prices and awarding contracts.
• Make decisions on a daily basis that strongly impact the company. They rarely consult with supervisors before making decisions.
• Are usually able to set their tasks for the day without consulting a supervisor.
• Must meet strict deadlines on a daily basis.
• Are moderately competitive with coworkers.

Hours/travel

• Generally have a set schedule each week.
• Frequently work more than the standard 40-hour week. This is because of special sales, conferences, or production deadlines.
• Often work evenings and weekends.
• Travel at least several days a month. Managers who work for worldwide manufacturing companies may travel outside the United States.

Physical demands

Purchasing managers frequently:

• Sit for long periods of time.

It is important for purchasing managers to be able to:

• Understand the speech of another person.
• Speak clearly so listeners can understand.
• See details of objects that are less than a few feet away.

It is not as important, but still necessary, for purchasing managers to be able to:

• See details of objects that are more than a few feet away.
• Focus on one source of sound and ignore others.
• See differences between colors, shades, and brightness.
• Hear sounds and recognize the difference between them.

Skills and abilities

Purchasing managers need to:

Communicate

• Understand spoken information.
• Speak clearly so listeners can understand.
• Understand written information.
• Listen to others and ask questions.
• Write clearly so other people can understand.
• Read and understand work-related materials.

Reason and problem solve

• Think of new ideas about a topic.
• Analyze ideas and use logic to determine their strengths and weaknesses.
• Think of original, unusual, or creative ways to solve problems.
• Judge the costs and benefits of a possible action.
• Notice when something is wrong or is likely to go wrong.
• Use reasoning to discover answers to problems.
• Follow guidelines to arrange objects or actions in a certain order.
• Combine several pieces of information and draw conclusions.
• Understand new information or materials by studying and working with them.
• Recognize the nature of a problem.
• Develop rules that group items in various ways.
• Recognize when important changes happen or are likely to happen in a system.
• Identify what must be changed to reach goals.
• Concentrate and not be distracted while performing a task.

Use math and science

• Choose a mathematical method or formula to solve problems.
• Add, subtract, multiply, and divide quickly and correctly.
• Use math skills to solve problems.

Manage oneself, people, time, and things

• Manage the time of self and others.
• Motivate, develop, and direct people as they work.
• Check how well one is learning or doing something.
• Obtain needed equipment, facilities, and materials and oversee their use.
• Decide how to spend money to get the work done and keep track of how the money was used.

Work with people

• Be aware of others' reactions and understand the possible causes.
• Persuade others to approach things differently.
• Solve problems by bringing others together to discuss differences.
• Change behavior in relation to others' actions.
• Look for ways to help people.
• Teach others how to do something.
• Use several methods to learn or teach new things.

Education and training

Educational programs

The programs of study listed below will help you prepare for the occupation or career cluster you are exploring.

Programs of study directly related to this occupation

• Purchasing and Contracts Management

Other programs of study to consider

• Agricultural Business and Management
• Business Management and Administration
• Buying and Merchandising
• Finance
• Logistics and Materials Management
• Manufacturing Engineering
• Marketing

Training

To work as a purchasing manager, you typically need to:

• have a high school diploma or equivalent;
• have a bachelor's degree; and
• have more than five years of purchasing experience.

Education after high school

Purchasing managers nearly always have a bachelor's degree or higher. Many colleges and universities offer programs in business, engineering, or economics.

Manufacturing firms have higher educational requirements than stores or distributors. Many purchasing managers in the manufacturing industry have a master's degree in business or engineering.

Work experience

You generally must work in the industry for several years before you can move into this occupation. Most purchasing managers work for up to six years as buyers, purchasing agents, or assistant managers before becoming purchasing managers.

On-the-job training

You should consider participating in an internship while in college. An internship is usually part of a four-year degree program. It offers you a chance to apply what you have learned in the classroom to a work situation. It also allows you to build skills and make contacts with people in the field.

Most employers provide at least one year of on-the-job training to new managers. The length of training varies by your background and your area.

Because of the fast changing nature of purchasing and technology, purchasing managers must continually update their knowledge and skills.

Military training

Some branches of the military train people to be purchasing and contracting managers. You need a bachelor's degree to enter this military occupation. Training lasts three to ten weeks, depending on your specialty. Additional training occurs on the job.

Helpful high school courses

In high school, take classes that prepare you for college. A college preparatory curriculum may be different from your state's graduation requirements.

You should also consider taking some advanced courses in high school. This includes Advanced Placement (AP) and International Baccalaureate (IB) courses if they are available in your school. If you do well in these courses, you may receive college credit for them. Advanced courses can also strengthen your college application.

Helpful electives to take in high school that prepare you for this career include:

• Accounting
• Banking and Finance
• Computer Applications
• Economics
• Introduction to Business
• Probability and Statistics

The courses listed above are meant to help you create your high school plan. If you have not already done so, talk to a school counselor or parent about the courses you are considering taking.

You should also check with a teacher or counselor to see if work-based learning opportunities are available in your school and community. These might include field trips, job shadowing, internships, and actual work experience. The goal of these activities is to help you connect your school experiences with real-life work.

Join some groups, try some hobbies, or volunteer with an organization that interests you. By participating in activities you can have fun, make new friends, and learn about yourself. Maybe one of them will help direct you to a future career. Here are examples of activities and groups that may be available in your high school or community.

Things to know

Retail and wholesale firms prefer to hire applicants who are familiar with the merchandise they sell. They also look for knowledge of wholesale and retail practices. Some employers promote qualified employees. Others recruit and train college graduates.

Educational requirements tend to vary with the size of the organization. Large stores and distributors prefer applicants who have a bachelor's degree with a business emphasis. Many manufacturing firms put a great emphasis on education. They prefer applicants with a bachelor's or master's degree in business, economics, or a technical field.

Most employers require that purchasers be able to use computers. They must know how to use word processing and spreadsheet software. In addition, employers look for applicants who can analyze financial and technical data. They also look for good communication, negotiation, and math skills.

Costs to workers

Workers may wish to join a professional association, which may have annual dues.

Job listings

Listed below are links to job categories from the National Labor Exchange that relate to this career. Once you get a list of jobs, you can view information about individual jobs and find out how to apply. If your job search finds too many openings, or if you wish to search for jobs outside of Washington, you will need to refine your search.

• Purchasing Managers 

To get a listing of current jobs from the WorkSource system, go to the WorkSource website .

Wages

Wages vary widely by the type of industry. The manager's level of experience and responsibility also affect wages.

Purchasing managers who work full time usually receive benefits. Typical benefits include paid vacation, sick leave, life and health insurance, and a retirement plan. In addition, managers who work in retail businesses may earn cash bonuses based on their performance. They may also receive discounts on merchandise bought from their employer.

Employment and outlook

Washington outlook

The table below provides information about the number of workers in this career in various regions. It also provides information about the expected growth rate and future job openings.

National employment

Purchasing managers work in almost every industry.

Major employers:

• Manufacturers
• Business management companies
• Wholesale trade companies
• Federal, state, and local government agencies

National outlook

Demand for this occupation will increase slowly. Growth will be limited due to declines in the manufacturing industry and cuts in government spending. Growth in the health care and computer design industries should provide the most opportunity.

Employment for this occupation will be good because they will continue to be needed to help procure goods and services for business operations or for resale to customers. Job prospects are best for those with a bachelor's or master's degree, or industry experience.

Other resources

American Apparel and Footwear Association 
740 - 6th Street NW
Washington, DC 20001
202.853.9080

American Hotel and Lodging Educational Institute 
(Certification options in the hospitality industry)

American Management Association 

American Purchasing Society 
PO Box 256
Aurora, IL 60507
630.859.0250

Institute of Public Procurement 
2411 Dulles Corner Park, Suite 350
Herndon, VA 20171
800.367.6447
703.736.8900

National Association of State Procurement Officers (NASPO) 
110 West Vine Street, Suite 600
Lexington, KY 40507
859.514.9159

National Contract Management Association 
21740 Beaumeade Circle, Suite 125
Ashburn, VA 20147
800.344.8096
571.382.0082

National Retail Federation 
1101 New York Avenue NW
Washington, DC 20005
800.673.4692
202.783.7971

Universal Public Purchasing Certification Council (UPPCC) 
201 East Main Street, Suite 1405
Lexington, KY 40507
800.884.6073

Washington Business Week 
PO Box 1170
Renton, WA 98057
253.237.3545

References

Career cluster

• Business Management and Administration

Career path

• Enterprising (Business Communications)

O*Net  occupation

• Purchasing Managers (11-3061.00) 

O*Net job zone 

• Job Zone 4 - Considerable preparation needed. A minimum of two to four years of work-related skill, knowledge, or experience is needed for these occupations.

DOT occupations

• Buyer, Tobacco, Head (162.167-014) 
• Manager, Merchandise (185.167-034) 
• Manager, Procurement Services (162.167-022) 
• Superintendent, Commissary (184.117-078) 

Holland occupational clusters

• Enterprising/Conventional/Realistic
• Enterprising/Conventional/Social

COPSystem

• Business Professional