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What does a purchasing manager do? (Plus how to become one)
Having the right stock in the right place at the right time is important for any business, as a good logistical foundation is the core of any operation. This means that buying and tracking goods is one of the most important jobs in any organisation seeking long-term effective working practices. This is where a purchasing manager plays an essential and highly lucrative role. In this article, we discuss the role of a purchasing manager, what they do in an organisation and some of the necessary skills for aspiring purchasing managers.
What does a purchasing manager do?
If you're interested in improving the productivity of a business, you might have asked the question, 'What does a purchasing manager do?'. A purchasing manager holds a range of responsibilities in a company, many of which are integral to its day-to-day operations. Completing each of these tasks is a necessity without which an organisation can struggle beyond the immediate future. Below are the key responsibilities purchasing managers hold and what these responsibilities entail in the long and short term:
Ordering products
Purchasing managers are responsible for keeping stock at an appropriate level. That means making use of information such as that stemming from the economic order quantity (EOQ) equation to order the optimal amount of stock to sell to customers over the upcoming period. As companies have a consistent level of demand, a lack of stock provision significantly impacts theirrevenueand profitability. Therefore, a purchasing manager has a significant impact on the effectiveness of the company's finances as a whole.Related:What does MOQ stand for? (Definition, types and FAQs)
Tracking stock levels
A purchasing manager is also responsible for tracking the products and parts which are running low in the warehouse. Without these parts, a company ceases to function, and a company rarely delivers all parts within the day of ordering. 'Just in time' delivery is unreliable, thus tracking stock so the purchasing director can order it in a timely manner is integral to a more efficient warehouse space.Related:What is inventory control? (Definition, types and guide)
Tracking budgets
Another aspect of a purchasing manager's role is tracking acquisition budgets and company finances. Due to the very nature of the role, every action a purchasing manager makes has a budgetary impact on the company in question. Therefore, keeping track of budgets is a fundamental part of a purchasing manager's daily work of making sure the company is financially stable.Related:How to write a purchasing manager cover letter (With examples)
Negotiating deals
Purchasing managers are responsible for getting products and parts into the company, and doing so means spending significant proportions of the company's capital. You spend less capital when prices are lower, which is only achievable by negotiating with a supplier. The purchasing manager opens dialogues with suppliers, reducing prices through a range of negotiations and discussions. Although not a necessity, negotiationskillsfacilitate better progress in regards to the other responsibilities purchasing managers hold.
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