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The business is constantly growing, the work environment is challenging, collaborative, stimulating and very productive also depending on the introduction of Lean Management logic. The purchasing area today lacks a centralized structure in most companies (each function manages its own purchases) and there is always a requirement of a Responsible person who coordinates and grows the function in parallel with the growth of the business and that is the Purchasing Manager. But what does a Purchase Manager do?
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The purchase manager is responsible for coordinating the purchase plan for all the goods necessary to carry out the business of the company. This is done both within small and medium-sized enterprises, as well as commercial enterprises, large-scale distribution companies and production and service cooperatives.
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Purchase Manager is a professional who oversees and coordinates the activities of the process of purchasing and sourcing the necessary goods and services within a company. Among the tasks of this profile, the definition of characteristics, quantities, delivery times and payment times of the different products is included.
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At the heart of his work is the relationship with suppliers, or rather the optimization of the T.C.O. (Total Cost of Procurement Ownership):
he must identify suppliers, contact them, conduct a negotiation that allows you to get the best price, the best quality, the best possible service conditions.
For these reasons, he must know very well the technical and production characteristics of the product to be treated.
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The first activities carried out may involve checking deliveries or stock status, or writing the report. Careers can be developed towards the decision-making level (Director/Purchasing Head) or towards the logistics function.
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What is the role of purchase manager?
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Role of Purchase Manager
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The purchasing manager is called upon to carry out a plurality of tasks within the company. First of all, he participates with the company’s top management in identifying short- and medium-term business objectives and policies, contributes to the definition of the budget by taking responsibility for achieving the objectives of his own competence and collaborates in the development of promotional and advertising plans.
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The Purchasing Manager’s aim is to create, structure and grow the Procurement function by centralizing, within a reasonable time and optimizing the strategic purchases raw materials
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In particular, he intervenes in the area:
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– Purchasing marketing and supplier relationship:
– Analyzes reference markets
– Identifies and takes care of supplier relationships
– The selection and evaluation of suppliers and supply offers
– Buying: conducting the purchase and development of supply agreements
– Technical assistance to the purchase
– Fulfilling the practices related to the conclusion of supply contracts
– Logistics purchasing
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The purchasing manager must follow company policies and work in harmony with them, but in relation to the tasks and activities outlined, he enjoys a high level of responsibility and autonomy.
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In fact, he has full autonomy with regard to the analysis, selection and evaluation of suppliers and those of a purely operational nature, such as the conduct of commercial negotiations and relations with suppliers and above all the conduct of the practices required in procurement.
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He relates to internal staff and to external staff. Connect directly with the company’s suppliers, collaborate with the company’s top management and coordinate the sourcing staff.
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He uses methodologies and techniques of market detection and analysis, classification and evaluation of suppliers, operational tools to purchase goods and/or services on the domestic and international market.
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Working hours are conditioned by the different types of work environment, overtime is provided in relation to certain stages of the work cycle. The main tools are the computer and its video writing programs, spreadsheets and databases.
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Professional profile
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To carry out this profession you need to know:
– The techniques and methodologies for market analysis.
– Operational tools for effective supplier management and logistics purchasing management.
– Negotiation techniques.
– tools for collecting, processing and analyzing data.
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You need to know:
– Make surveys, measurements, analysis, description and evaluation of supply markets and suppliers.
– Develop a strategic and operational purchase plan.
– Manage the entire procurement process.
– Communicate and negotiate effectively with suppliers.
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The purchasing manager is an individual responsible for purchasing materials, equipment or services for an organization in an enterprise
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Purchasing Manager Responsibilities
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Decision maker for procurement
Review procurement requirements
Decide on the right way to purchase
Develop and confirm product specifications, operating manuals and operating terms, and product eligibility standards
Allocate, select and maintain potential supply resources
Responsible for the preparation and application of the bid
Assessing competitive bids
Responsible for supplier investigation and field survey
Use scoring or booking criteria to measure supplier performance
Check the samples provided by the supplier and test the product
Procurement contracts and orders are drafted, issued and managed
Resolve contractual differences with suppliers and payment terms
Responsible for and ensure that procurement actions taken are in accordance with policies, regulations and ethics
Audit the annual report of the procurement plan, overall planning and determination of procurement content.
Reduce unnecessary expenses to effectively fund and ensure maximum supplies.
Supervise and participate in the business negotiations of large-volume commodity orders, check the implementation of the contract and the implementation of the situation.
Supervise and inspect the procurement process and price control of the buyers.
Attend regular meeting of department managers, regularly report the results of procurement implementation.
Supervise procurement personnel in the procurement business activities, to abide by the law, reputation, do not ask for bribes, do not accept bribes, establish good relations with suppliers, in the principle of equality and mutual benefit under the principle of doing business.
Develop and implement strategies and programmes for procurement negotiations
Develop and improve the technical content of procurement and supply systems and inventory management systems
Address quality issues, including establishing quality assessment criteria, setting goals, and providing solutions to quality problems
Establish and maintain good relationships with other functional departments within the company
Participate in cross-functional or multi-functional groups
Useful advocacy and constructive recommendations for improvement sourcing of the company’s procurement and supply management policies and procedures
Use tactical methods such as supplier partnerships, strategic alliances, supply chain management, supplier training, etc. to establish good supplier relationships
Collect product and price information and share conversations with product salespeople
Handling of supplier inquiries, objections and requests
Implementation of development and nurturing projects for small suppliers
In addition, the work of a purchasing manager often reflects the critical and true value of the purchasing department to the company as a whole, including:
Develop strategies for procurement in terms of finance and overall role
Adjust, control and store raw materials
Establish inventory and timely delivery strategy
Resolving inventory conflicts
Handling obsolete or excess equipment and materials
Develop and implement standardized procedures, improve processes, reduce costs, and avoid cost and cost fixation
Coordinate new products and improved products or services
Planning and execution of procurement and supply strategies based on data forecasts and future demand projections.
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Of course, in addition to being responsible for functional management, purchasing managers have or enjoy management and administrative responsibilities for the entire procurement department, including:
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Strategic planning, purpose and goal development
Develop operating systems, rules and processes
Regularly report the work of the procurement department to senior management and relevant departments of the company
Analyze and resolve issues that arise in procurement audit reports
Designate and apply departmental performance evaluation criteria
Control and management of departmental budgets
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In the procurement of human resources, the purchasing manager should consider the following factors:
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Hiring, managing, evaluating, promoting or even firing department employees
Training employees
Solve employee work problems
Plan for medium-term needs and optimize inventory management,
Follow the strategic purchases of the raw material (in collaboration with the management that today directly manages this business, with a dedicated operational resource)
Follow the external work account by setting up, even with vendors, effective planning logic
Assess and improve the supplier fleet, including in the logic of cost reduction (while respecting quality and service priorities)
Coordinate the purchase of various materials and services (including facility management aspects)
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Education and training
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Degree in economics, management or related professional studies, and trained in logistics management, production management, negotiation, and management skills development
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Work experience
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Material procurement or procurement management experience. Familiar with the industry materials, familiar with material procurement bidding procedures and logistics management business processes
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You will be required to have skills to analyze, problem-solving, interpersonal communication, negotiation, persuasion.
A good knowledge of languages is an additional element of professionalism.
You will benefit if you are a person with resourcefulness, sense of responsibility, precision, wisdom, dynamism, intuition and ability to adapt the business to the new way of operating in the presence of the Internet that introduces processes of innovation and transformation in the ways of buying and selling.
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New talents entering the labour market may be placed alongside a more experienced figure, such as the Director of Procurement/Purchases.
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Skills which will help a Purchase Manager
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coordination capabilities of the team and the organization of the purchasing function,
technical expertise in materials, mechanical design, supplier evaluation, negotiation management, process organization, Lean Management logic,
the human and management approach to gradually create engagement and cohesion around a different way of working
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In summary, the main activities of the Buyer are:
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Identify the best suppliers in relation to quality-to-cost optimization;
Negotiate purchase rates, renewal and contract additions;
Select the goods to be purchased and control the progress of deliveries, in order to ensure the constant availability of the managed materials;
Constantly analyze information from the supplier and competitor market and from different outlets, with any changes to purchase plans.
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He must have knowledge in the fields of economics and administration, methodologies and techniques of market analysis and marketing, budget management and assessment of forecast and final budgets. It must also have extensive knowledge of commercial contracting and financial systems, and have developed a good knowledge of the product disciplines.
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The ideal Purchase Manager has a strong aptitude for managing interpersonal relationships and negotiation, which are fundamental characteristics especially for the management of relationships with suppliers. The communication skills and the excellent ability to analyze and organize are other personal skills necessary for the Purchasing Manager.
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what does a purchasing manager do
purchase manager
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What does a Logistics Manager do?
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