Written by Michael Feder
Reviewed byÌýKathryn Uhles, MIS, MSP,ÌýDean, College of Business and IT
A purchasing manager obtains products, materials or services that an organization needs for its operations. Additionally, in this supply chain management career, purchasing managers oversee the purchasing department and work alongside other specialists, such as logistics managers and inventory specialists.
Purchasing managers focus on much more than simply buying items for use in business operations. They also negotiate contracts with suppliers or vendors, assess shipping costs and define special conditions for transport. They research lower prices from different suppliers, calculate time frames for orders and ensure the products or services meet quality standards and other requirements.
To do this well, purchasing managers must be familiar with their respective industries. For example, when working for a manufacturing company, they need to know the quality standards for the raw materials they purchase. Similarly, those working in food production need to stay abreast of soft commodity prices and the shelf life of various ingredients.
Purchasing managers who work in service-oriented businesses need to know which skills and experience are necessary for different tasks. For example, those working in the legal profession must understand the needs of specific cases to find outside firms or individual attorneys who can handle specialized jobs.
This career also has a relationship-building element. Part of the job can be visiting trade shows or contacting suppliers to build contacts for future purchases. For this reason, many purchasing agents have a background in sales.
Today’s globally connected businesses can have complex supply chain and logistics arrangements. Every company needs specific resources to operate successfully, and the price of those resources significantly affects the bottom line. A purchasing department helps organize and streamline this aspect of the business, thereby impacting the company’s profit margins.
Not surprisingly then, a purchasing manager works continually to find ways to lower the costs of products, materials or services. This process involves building relationships and negotiating with vendors and suppliers.
Some manufacturing, distribution, retail or wholesale companies have extremely complex inventory requirements necessitating an entire team of procurement specialists. The manager who oversees this group is responsible for hiring, training and evaluating employees.
Companies need purchasing managers who can make critical decisions with minimal oversight. Here are steps to qualify for this demanding career.
Applicants typically in business, finance or a related field, according to the U.S. Bureau of Labor Statistics (BLS). However, there are instances when a high school diploma and relevant military experience may suffice.
Some industries require specialized knowledge. For example, food or farm-related businesses may hire candidates with an agriculture-related degree.Ìý
Because this is a leadership role, employers may seek applicants with a master’s degree or specialized training. For example, a certificate in business operations can provide a college graduate with knowledge necessary for a purchasing department job.
Larger corporations and those with complex supply chains may promote experienced procurement specialists or hire managers with a master’s degree in business or finance.
Specific skills are needed for this role. The job can involve makingÌýfinancial forecasts using statistical software and available pricing and operations data. Professionals also need to understand concepts like capital allocation, macroeconomic trends and other business-related factors that can affect pricing and supply.
Because their role hinges on relationships, purchasing managers need relationship-building, leadership and communication skills to engage and negotiate with suppliers and vendors and effectively manage employees in the department.
Finally, analytical and decision-making skills help assess both needs and market conditions before making decisions that benefit a company.
Some companies focus on the negotiation and relationship-building requirements of this career and seek applicants with experience in sales. Others may consider promoting production specialists with experience in the same industry. For leadership roles, applicants typically need experience of a certain number of years.
Certification is not a requirement for any purchasing manager job. However, several accreditations can help during the job application proces
Most employers don’t require certification, but they may prefer candidates who have completed certification in these areas.
As of May 2024, purchasing managers earned between , according to BLS. Earning potential can vary depending on the size of the company, its industry, its location and the level of expertise required for the job.
The highest-paying sectors include oil and gas extraction and energy distribution. Other service-oriented businesses, such as law firms and data processing centers, may also offer above-average salaries.
BLS projects a in overall employment of purchasing managers between 2023 and 2033, which equates to about 61,100 new jobs on average each year during the decade.
Salary ranges are not specific to students or graduates of °®¶¹´«Ã½. Actual outcomes vary based on multiple factors, including prior work experience, geographic location and other factors specific to the individual. °®¶¹´«Ã½ does not guarantee employment, salary level or career advancement. BLS data is geographically based. Information for a specific state/city can be researched on the BLS website.
BLS Occupational Employment Projections, 2023-2033 is published by the U.S. Bureau of Labor Statistics. This data reflects BLS’ projections of national (not local) conditions. These data points are not specific to °®¶¹´«Ã½ students or graduates.
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One advantage to becoming a purchasing manager is that job opportunities are available in a wide range of industries.
Any large business that buys or sells goods needs a well-run purchasing department. Different manufacturing industries hire individuals to work in this role to source a steady supply of raw materials. Retail businesses also need skilled purchasing managers, and so do large corporations that rely on goods and services. In fact, most corporations have a procurement team. Even if they don’t have retail, wholesale or manufacturing operations, corporations need buyers to purchase equipment and find service contractors to handle specific tasks.
Although °®¶¹´«Ã½ does not currently offer any degrees specifically aligned with the role of purchasing manager, the University does offer several online business degree programs aligned with other types of roles:Ìý
A graduate of Johns Hopkins University and its Writing Seminars program and winner of the Stephen A. Dixon Literary Prize, Michael Feder brings an eye for detail and a passion for research to every article he writes. His academic and professional background includes experience in marketing, content development, script writing and SEO. Today, he works as a multimedia specialist at °®¶¹´«Ã½ where he covers a variety of topics ranging from healthcare to IT.
Currently Dean of the College of Business and Information Technology,ÌýKathryn Uhles has served °®¶¹´«Ã½ in a variety of roles since 2006. Prior to joining °®¶¹´«Ã½, Kathryn taught fifth grade to underprivileged youth in Phoenix.
This article has been vetted by °®¶¹´«Ã½'s editorial advisory committee.Ìý
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