Why Purchasing & Procurement?
Becoming a purchasing and procurement manager offers the opportunity to optimize a business’ efficiency by streamlining its supply chain and ultimately reducing costs while increasing profitability. Procurement and purchasing management is an ideal career for leadership-oriented individuals seeking a community-oriented role.
Further, it is an excellent way to leverage your creativity and problem-solving skills by strategically sourcing and procuring high-quality materials and ensuring the production of top-tier products and services, enhancing the company’s reputation and competitiveness.
Classes & Training
How Long Does it Take?
Although the duration of your training to become a procurement and purchasing manager may vary depending on your location of education and employment, prospective managers should expect to take at least 6 months to complete their certification. Some employers may additionally request that managers have college degrees in related areas, such as supply chain management or business management, as well as prior experience in business or sales.
How Much Does it Cost?
Again, the cost of education to become a procurement and purchasing manager can vary based on your location of education and employment. Students may pursue certifications such as the Certified Professional in Supply Management (CPSM) or Certified Supply Chain Professional (CSCP) certificates, or they may opt for 4-year degrees in business and business-adjacent fields. Consequently, the cost of an individual course typically falls around $2,300, whereas university tuition may average up to $8,000 per year.
What Do You Learn?
A course in procurement and purchasing management will address the following:
- Purchasing Management: An overview of what a career in procurement and purchasing management entails.
- Essentials of Purchasing: Purchasing function in an organization, interdependencies on and the impact of the purchasing function, and administration aspects of purchasing.
- Budgeting Essentials: What budgeting for a corporation entails, the factors that impact budgeting, and how inventory affects the budgeting process.
- The Procurement Process: The supplier selection process, the bidding process, and the procurement process.
- Supplier Contracting: General contract principles, contract drafting, the types of contracts used in purchasing, and agency law regarding contract authority.
- Price and Cost Analysis: Price evaluation, the use of data, strategic cost analysis, and maximizing cash-in and cash-out timing in your organization.
- Management Essentials: Organization culture, change, resistance to change, power and influence, leadership theories, decision-making and strategy, human resource procedures, and financial accountability.
- Negotiation Strategies: Steps and tools in negotiating, types of negotiations, and how to prepare for them.
- Persuasive Communication: The fundamentals of communication and the importance of knowing your audience, the power of listening and credibility, evidence, and emotion.
- Legal Aspects of Contracts: What a contract entails, duties and obligations of contracts, and legal representation in contracts.
Although the path to a career in procurement and purchasing may vary depending on your education and prior experience, here are a few critical details to consider when beginning this journey.
What do Procurement & Purchasing Managers Do?
Procurement and purchasing managers play pivotal roles in supply chain management. Procurement managers are responsible for sourcing and acquiring goods and services, ensuring they meet quality and cost criteria, and negotiating with suppliers to secure favorable terms. Purchasing managers oversee the efficient flow of materials and goods within an organization, coordinating tasks like inventory management, production scheduling, and distribution to optimize operations. Together, these roles help organizations minimize costs, streamline processes, and maintain a steady supply of essential resources, ultimately contributing to their success in a highly competitive marketplace.
Why this Career?
Choosing a career in procurement and purchase management can be a rewarding decision for several reasons. Firstly, it offers a diverse and dynamic work environment with opportunities across various industries, ensuring long-term job security. Moreover, professionals in this field play a pivotal role in cost reduction, supplier management, and ensuring the quality of goods and services, making them indispensable assets to organizations. Additionally, procurement and purchase managers have the chance to make a significant impact on a company’s strategic goals. The constant need for efficient resource allocation and the potential for career growth make this field an attractive choice for those seeking a challenging and financially rewarding career.
Where Can You Work?
Procurement and purchasing managers can find employment opportunities in various industries and organizations. They are in demand across sectors such as manufacturing, retail, healthcare, government, technology, and more. In the private sector, they can work for large corporations, small businesses, or as consultants. Public sector opportunities exist in government agencies and non-profit organizations. Additionally, procurement and purchasing managers can explore roles in supply chain management, logistics, and procurement service providers. The versatility of their skills and the universal need for efficient resource management means that these professionals have the flexibility to work in diverse settings and industries.
Procurement vs. Purchasing
In the context of a career as a procurement and purchasing manager, the critical difference lies in the scope and strategic focus of their roles. Procurement managers are responsible for the entire procurement process, encompassing supplier selection, negotiation, contract management, and ensuring that suitable goods or services are obtained to meet an organization’s strategic goals. They often have a broader perspective and are more involved in supply chain optimization and strategic decision-making. In contrast, purchasing managers typically focus on the tactical aspect of acquiring specific products or services at the best price, quality, and terms. While there is overlap between the two roles, procurement managers tend to have a more strategic and comprehensive responsibility, while purchasing managers concentrate on specific transactions and vendor interactions.
Salary & Career Outlook
According to the Bureau of Labor Statistics, the median salary for purchasing managers is $131,350 per year, or $63.15 per hour. Although career outlook is in decline (-6%) for the role, about 45,000 openings for purchasing managers are projected to open each year over the next decade.