Buyers and Purchasing Agents

Career summary

#3/26/19 lh

Buyers and purchasing agents buy goods and services for their company. Those who buy finished goods, such as clothes or furniture, are called buyers. Those who buy the parts and materials that help make goods are called purchasing agents or purchasers. These two types of workers have similar duties.

Buyers and purchasers research suppliers before buying any goods. Buyers and purchasing agents review the history and quality of the suppliers. They go to trade shows to see products on display. Sometimes they travel to factories to examine products. They evaluate suppliers based on factors such as:

• Price
• Quality
• Availability

When buyers and purchasing agents locate suppliers, they solicit bids. They provide suppliers a list of what they need and ask them to prepare a written statement of how much it will cost.

When a price is agreed upon, buyers sign a contract with the supplier. They continue to monitor the contract to ensure the agreements are met. If there are any problems, they work with suppliers to resolve them.

Purchasing agents

Purchasing agents usually buy goods used to create new products sold by their company. Purchasing agents must have a technical working knowledge of the goods and services purchased. They may discuss the design of products with design engineers or production supervisors.

Purchasing agents can specialize in farm products such as corn and grain. They can also specialize in goods used in operations such as paper or industrial equipment.

Buyers

Buyers purchase items to resell to customers. This includes items such as clothes and electronics. Buyers must determine how much of an item they think their company can sell. They also have to decide what items will appeal to their customers.

Buyers and purchasing agents often specialize in what they buy. A buyer for a department store may buy only shoes. A purchasing agent may buy one type of commodity, such as steel, cotton, or wheat. In small companies one buyer may buy all the products.

Purchasing staff who work for the federal government are called contract specialists. They usually use sealed bids. Different suppliers submit their product prices on an anonymous bid. The specialist chooses the bid that is the lowest. They must follow many laws.

Related careers

This career is part of the Marketing cluster of careers.

Related careers include:

• Agricultural Inspectors
• Appraisers and Assessors
• Blue-Collar Worker Supervisors
• Cost Estimators
• Credit Analysts
• Insurance Adjusters and Examiners
• Management Analysts
• Market Research Analysts
• Property and Real Estate Managers
• Purchasing Managers
• Real Estate Agents
• Retail Salespeople
• Sales Representatives
• Sales Worker Supervisors
• Storage and Transportation Managers

Job duties

Task list

The following list of tasks is specific to buyers and purchasing agents.

• Choose products to sell. Consider quality, size, or environmental soundness.
• Locate and arrange for purchase of goods.
• Compare transportation choices to lower energy use for moving products.
• Direct and coordinate workers' activities.
• Analyze product information. This may include what is a good price to pay or which product has less effect on the environment.
• Negotiate lowest price with suppliers and vendors.
• Formulate policies and rules for placing bids for goods or services. Consider impact on the environment.
• Award contracts to suppliers.
• Evaluate and monitor contracts to ensure promises are met.
• Confer with vendors to discuss new products, green products, or problems with orders.
• Use computer software to manage sales records and inventory.
• Identify customer and store needs. This includes customers' efforts to buy green products.
• Determine the best way to introduce new green products.
• Set or recommend prices on products. This includes green products.
• Develop and approve advertising materials.
• Advertise green products based on customer wants and needs.
• Teach staff about new products.
• Monitor competitor's sales activities.
• Research environmental trends and economic conditions to predict buying patterns.
• Arrange purchase of equipment, fertilizer, or feed.

Common work activities

Buyers and purchasing agents perform the following tasks. These tasks are common to many careers.

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

Work requirements

Working conditions

In a typical work setting, buyers and purchasing agents:

Interpersonal relationships

• Have a high level of contact with others.
• Communicate with others by telephone, e-mail, and face-to-face discussions. They also write letters and memos, but less frequently.
• Often work as part of a team.
• Are sometimes placed in conflict situations in which others may be rude or angry.
• Are somewhat responsible for the work done by others.

Physical work conditions

• Almost always work indoors. Those who work with farm products or sporting goods may work outdoors.
• May share work space with others.

Work performance

• Must fully complete and be exact in their work. Buyers and purchasing agents must evaluate materials carefully to see if they are right for their products. Errors could seriously endanger the users of their products.
• Repeat the same mental tasks.
• Regularly make decisions that affect others as well as their own company's reputation and performance. They sometimes act independently, but usually take recommendations from others first before deciding what to do.
• Usually set their daily tasks and goals without talking to a supervisor first.
• Work in a moderately competitive atmosphere.
• Must meet strict weekly deadlines.

Hours/travel

• May work part time or full time.
• Usually work more than 40 hours a week to meet special sales or deadlines.
• Often work evenings and weekends. This overtime is more common before holiday seasons.
• May travel several days a month. Purchasers for large manufacturers and retailers may travel outside of the country. Fashion buyers may also travel internationally.

Physical demands

Buyers and purchasing agents frequently:

• Sit for long periods of time.

It is important for buyers and purchasing agents to be able to:

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

It is not as important, but still necessary, for buyers and purchasing agents to be able to:

• See details of objects that are more than a few feet away.
• See differences between colors, shades, and brightness.

Skills and abilities

Buyers and purchasing agents need to:

Communicate

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

Reason and problem solve

• Analyze ideas and use logic to determine their strengths and weaknesses.
• Use reasoning to discover answers to problems.
• Notice when something is wrong or is likely to go wrong.
• Judge the costs and benefits of a possible action.
• Combine several pieces of information and draw conclusions.
• Recognize the nature of a problem.
• Understand new information or materials by studying and working with them.
• Follow guidelines to arrange objects or actions in a certain order.
• Develop rules that group items in various ways.
• Think of original, unusual, or creative ways to solve problems.
• Think of new ideas about a topic.

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

• Check how well one is learning or doing something.
• Decide how to spend money to get the work done and keep track of how the money was used.
• Manage the time of self and others.

Work with people

• Solve problems by bringing others together to discuss differences.
• Persuade others to approach things differently.
• Be aware of others' reactions and understand the possible causes.
• Look for ways to help people.
• Change behavior in relation to others' actions.

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

• Buying and Merchandising
• Fashion Merchandising
• Purchasing and Contracts Management

Other programs of study to consider

• Agricultural Business and Management
• Agricultural Economics
• Apparel and Textiles
• Business, General
• Chemistry
• Economics
• Electronic Commerce
• Logistics and Materials Management
• Marketing
• Operations Management
• Wine Steward/Sommelier

Training

To work as a buyer or purchasing agent, you typically need to:

• have a high school diploma or equivalent; 
• have a bachelor's degree; and
• complete moderate-term, on-the-job training.

Education after high school

There are many educational paths you can take to become a buyer or purchasing agent. The path varies with the type of company you want to work for and the goods or services they provide.

Many buyers and purchasing agents have a bachelor's degree. Common majors are business, economics, and purchasing. Some buyers and purchasing agents have a bachelor's degree related to the products they buy. For example, those who purchase supplies for machinery manufacturers may have a degree in engineering. Those who purchase plastics for toy manufacturers may have a degree in chemistry.

You may need an engineering or master's degree for jobs that involve technical products. These jobs generally are in manufacturing, government, and construction.

Work experience

Many firms promote their employees to beginning or assistant buying jobs. In retail stores, you may start as a sales clerk or a junior buyer. Manufacturing firms may promote experienced purchasing clerks. Construction firms and suppliers look for workers who have good knowledge of building materials and methods.

On-the-job training

As a new buyer, you receive on-the-job training that typically lasts up to one year. In wholesale and retail businesses, you begin by selling merchandise. You may also supervise other sales staff. You learn how to check invoices on new deliveries and keep track of stock. As you progress, you get more buying-related duties.

Many manufacturing firms have training programs for new buyers and purchasing agents. You learn about company operations and purchasing practices. You work closely with experienced workers who teach you about commodities, prices, suppliers, and markets. You may also work with the production-planning department and learn about what is required of the materials that make the products. In addition, you learn how the inventory system works. It is important that you keep the supplies in stock for when workers need them.

Military training

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

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
• Computer Applications
• Introduction to Business
• Marketing
• Principles of Sales
• Retail Marketing

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

Employers prefer to hire applicants who know their company and its products. They also look for people who know how wholesale and retail markets work. Some retail firms promote qualified employees to assistant buyer positions. Other retail stores recruit and train college graduates as assistant buyers. Most employers use both hiring methods.

Employers' requirements for hiring vary with the size of the company. Large stores and wholesale and retail trade companies prefer to hire people who have completed their bachelor's degree. Many prefer applicants who have pursued a business degree.

Manufacturing firms are less likely to hire someone who does not have a bachelor's or master's degree. These employers prefer workers who have a degree in business or economics. Manufacturing firms may hire people who have technical training related to their company's products.

Employers prefer to hire people who know how to use computers, especially word processing and spreadsheet software. Employers also look for workers who have good math skills.

Employers look for people who understand customers. They look for someone who can make quick and good decisions about products. They also look for someone who can be resourceful. For example, if a buyer is unable to find an exact item, they must find one that is similar. Employers look for workers who are aware of trends and know what types of products will sell. Employers also look for workers with leadership and negotiating skills.

Sales and customer service experience can be an advantage. Plan to take liberal arts and science courses related to the industry in which you hope to work.

When hiring experienced workers, many employers require certification. Certification is becoming more important for advancement and is available through the Institute for Supply Management, the American Purchasing Society, or the National Institute of Governmental Purchasing. For government buyers and purchasing agents, certification though the Universal Public Purchasing Certification Council may be mandatory.

#Checked all of these assns & confirmed still offer certification 3/2/10, 2/21/12 & 2/12/14 cj.

Tips

Retail experience including stock, inventory, pricing, ordering, receiving, freight bills, and damage claims is helpful.

Buyers and purchasing agents may have to invest in suitable business clothes. They may also want to join a professional association, which may have annual dues. Some workers may have to pay for education and testing leading to certification. Agents may also pay for continuing education to advance in the field and for certificate renewal. However, employers often will pay all or part of continuing education and certification costs.

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.

• Buyers and Purchasing Agents, Farm Products 
• Purchasing Agents, Except Wholesale, Retail, and Farm Products 
• Wholesale and Retail Buyers, Except Farm Products 

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

Wages

Wages for buyers and purchasing agents vary by field. Pay also varies based on how much the company sells, and by the size of the company. Larger companies generally pay higher wages than smaller companies.

Pay also varies by the type of company or agency. For example, buyers who work with farm products tend to earn lower wages than those who work with other products. Purchasing agents who work for the federal government earn higher wages than those who work for local government agencies.

Buyers and purchasing agents who work full time usually earn benefits. Typical benefits are health insurance, paid vacation, and a retirement plan. In addition to these benefits, retail buyers may receive cash bonuses. These bonuses are based on their work performance. They may also receive discounts on merchandise.

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

Most buyers or purchasing agents work in wholesale trade at distribution centers or factories. Wholesale trading companies help manufacturers sell their products. Wholesale trade includes a wide range of products. These products range from frozen peas to baseball bats to aircraft.

Almost every business that sells goods has someone who buys the parts for them. This means that jobs can be found in both small and large towns. Buyers and purchasing agents work in both large and small companies. However, larger companies usually are located in larger towns. Larger companies also may hire more than one buyer or purchasing agent.

Major employers:

• Merchant wholesalers
• Manufacturing
• Retail trade

National outlook

Demand will decrease for this occupation. Growth in the manufacturing and agriculture industries is slowing. Government and defense-related spending has also slowed.

Job prospects are best for people with a bachelor's degree in business. This is a large occupation and most job openings will result from current workers leaving this occupation or retiring.

Other resources

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

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 Procurement Institute 
702.989.8095

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

References

Career cluster

• Marketing

Career path

• Enterprising (Business Communications)

O*Net  occupations

• Buyers and Purchasing Agents, Farm Products (13-1021.00) 
• Purchasing Agents, Except Wholesale, Retail, and Farm Products (13-1023.00) 
• Wholesale and Retail Buyers, Except Farm Products (13-1022.00) 

O*Net job zones 

• Job Zone 3 - Medium preparation needed. Previous work-related skill, knowledge, or experience is required for these occupations.

• 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 (162.157-018) 
• Buyer, Assistant (162.157-022) 
• Buyer, Grain (162.167-010) 
• Christmas-tree Contractor (162.117-010) 
• Clean-rice Broker (162.167-018) 
• Contract Specialist (162.117-018) 
• Field Contractor (162.117-022) 
• Field-contact Technician (162.117-026) 
• Manager, Contracts (163.117-010) 
• Outside Property Agent (162.157-030) 
• Purchasing Agent (162.157-038) 

Strong Interest Inventory

• Buyer
• Purchasing Agent

Holland occupational clusters

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

COPSystem

• Business Skilled