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Purchasing Manager
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.
Ipswich (/ˈɪpswɪtʃ/ (About this soundlisten)) is a historic county town in Suffolk, England. The town is located in East Anglia about 10 miles away from the mouth of the River Orwell and the North Sea. Ipswich is both on the Great Eastern Main Line railway and the A12 road, it is 66 miles (106 km) north-east of London, 54 miles (89 km) east-southeast of Cambridge, and 45 miles (72 km) south of Norwich. Ipswich is surrounded by two Areas of Outstanding Natural Beauty (AONB); Suffolk Coast and Heaths and Dedham Vale.
Ipswich's modern name is derived from the medieval name Gippeswic, likely taken either from an Old Saxon personal name or from an earlier name given to the Orwell Estuary (although unrelated to the name of the River Gipping).[1][2] It has also been known as Gyppewicus and Yppswyche.[3] The town has been continuously occupied since the Saxon period,[3] and is contested to be one of the oldest towns in the United Kingdom.[4] Ipswich was a settlement of great economic importance to England throughout its history, particularly in trade.[5] The town's historical dock, present-day Ipswich Waterfront, was known as the largest and most important dock in the kingdom.[5][6]
Ipswich is a non-metropolitan district and is a large settlement despite its town status. The urban development of Ipswich overspills the borough boundaries significantly, with 75% of the town's population living within the borough at the time of the 2011 Census, when it was the fourth-largest urban area in the United Kingdom's East of England region, and the 42nd-largest urban area in England and Wales.[7] In 2011, the town of Ipswich was found to have a population of 133,384,[8][9] while the Ipswich built-up area is estimated to have a population of approximately 180,000 in 2011.[7]
The town is split into various quarters, with central and the waterfront drawing the most footfall.[10] Central is home to the town's retail shopping and the historical town square, the Cornhill. The waterfront is located south of the town centre on the bend of the River Orwell and is a picturesque setting housing the town's impressive marina. The waterfront was historically an industrial port but has since been transformed into a trendy area lined with high-rise apartment buildings, restaurants, bars and cafés. The waterfront is also home to one of the UK's newest universities, the University of Suffolk, which was formed in 2016.[11]
Ipswich has become a tourist hotspot in the UK with 3.5 million people reported to have visited the county town in 2016.[12] In 2020, Ipswich was ranked as an emerging global tourist destination by TripAdvisor.[13] Ipswich was voted as the 7th most desirable place to live and work in England by the Royal Mail in 2017.[14] In 2007, Ipswich was awarded the cleanest town award,[15] and in 2015, Ipswich was rated as the third happiest place to live in the UK.[16]
