A purchasing manager negotiates supply contracts with outside vendors and oversees the procurement department’s day-to-day operations. A purchasing manager’s responsibilities, like those of most supervisory positions, include hiring, coaching, and terminating employees. People in these positions are also responsible for managing departmental budgets and generating financial reports.
Companies in a variety of industries must acquire both durable and non-durable goods in large quantities. Some of these items, such as raw materials, are used in the manufacturing of goods, while others, such as office furniture and storage units, are an essential part of any workplace. A purchasing manager’s responsibilities include contacting vendors and attempting to purchase supplies at the lowest possible cost. Managers typically have the authority to negotiate short- and long-term contracts, and prices are often determined the length of these agreements. In some cases, a company may have only one procurement manager who is responsible for all of the company’s purchasing needs, while in others, large companies may have several procurement managers, each of whom is responsible for the acquisition of a specific type of product.
A company’s needs may change over time, and an increase or decrease in production levels may necessitate an increase or decrease in inventory purchases. A purchasing manager’s responsibilities include reviewing operating costs and inventory levels on a regular basis to determine whether the company has enough supplies to meet its needs. If one department has an excess of paper, ink, or another type of basic office supply, the manager may be able to lower the company’s overall costs reallocating those supplies to another department that does not. Furthermore, if one departmental manager discovers a way to cut costs eliminating waste, the purchasing manager may inform other departmental supervisors about the cost-cutting measures.
A purchasing manager’s responsibilities also include employee supervision in addition to managing acquisitions and supplies. A single manager may be in charge of a group of procurement agents, each of whom is responsible for negotiating deals with specific vendors. The manager must ensure that these individuals are aware of company policies and possess the necessary interpersonal skills to effectively negotiate on behalf of the company. Employees who place excessive or insufficient orders, or who perform poorly in their jobs, may require additional one-on-one coaching from the manager. If a worker refuses or is unable to improve their job performance, the purchasing manager is in charge of disciplining, firing, and replacing that employee.