In most businesses, the purchasing manager is in charge of procuring the materials, parts, supplies, products, and services required to manufacture a specific product or sell a product manufactured the parent company or subsidiary. He or she should be well-organized, detail-oriented, and knowledgeable about basic accounting and inventory management procedures.
The purchasing manager must maintain positive relationships with vendors and collaborate closely with accounting, credit, and shipping and receiving to ensure that the purchase-to-inventory process runs smoothly. These responsibilities must be taken seriously because mistakes in this area can affect a company’s entire financial balance.
A good purchasing manager must first develop a positive working relationship with his or her suppliers. Negotiating for the best pricing structure, as well as ensuring acceptable availability and consistent shipping times, ensures that inventory is kept in check and productivity remains consistent. If allowed to continue in the relationship without strong guidelines set the manager, an unreliable vendor can cause production delays, lost sales, and even financial instability. To help the purchasing agent establish a stock forecast and keep ordering at a reasonable level, communication and organization go hand in hand.
The accounting department, which includes accounts receivable, payable, and credit, must also collaborate closely with the purchasing manager to determine how much money is set aside for inventory and periodic purchases, how quickly invoices are paid, and how accurate invoices are when they arrive. The purchaser must be an excellent record keeper and understand how the accounting department’s system works in this area. Because money is the weakest link in the business chain, maintaining a precise flow between these groups is a critical task that must be handled with care.
Finally, having a good understanding of the company’s inventory and how the shipping and receiving departments work on a daily basis will help you build a solid foundation. When a company has a well-organized and detail-oriented shipping department, the purchasing manager can rest assured that the items ordered will arrive on time, be inspected, and moved into inventory. Having a group of like-minded people will act as quality control for whatever you put in your inventory. The purchasing manager wears many hats within a company, but if they stay focused, they can achieve any company’s ultimate goal of being productive and profitable.