procurement executives are also known as purchasing agents or buyers

8/2/2019 Procurement Executives Are Also Known as Purchasing Agents or Buyers

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Procurement executives are also known as purchasing agents or buyers. They work for acompany, buying an array of different goods and services. It is their job to get the bestproducts at the lowest prices.

Functiono Procurement executives have the task of predicting what their customers

or clients will want to buy. If they predict incorrectly, they can negativelyaffect a company's profits. They need to check stock and sales levels,compare their company's sales activities with their competitors andoversee the general economic climate to see what people will and will notbuy.

Work Environment

o Procurement executives work for the most part in pleasant offices. They

work a standard 40-hour week, although overtime is common especiallyaround holiday periods and back-to-school periods for those working inretail.

Education

o Larger companies prefer candidates to have a bachelor's degree in business

or something related. For those wanting to advance to managerialpositions within procurement departments, a master's degree will often beneeded.

Prospects

o According to the Bureau of Labor Statistics, there were 527,400

procurement executives in the U.S. in 2008. The sector is expected togrow by seven percent up to 2018, which is about as fast as the nationalaverage for all jobs in the U.S.

Earnings

o In 2008, the average salary for a procurement executive in the U.S. was

$49,670, with the top 10 percent of earners taking home more than$96,220.


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Procurement Executive foreign Job in Makkays

Jobs DescriptionScreen the recieved RFQ(request for quotation) from salesSearch for best available products w.r.t quality, durability, compatability and best prices

from international marketsSearch for new vendors worldwideNeggotiate with suppliers for best prices, credit and delivery termsCompare recieved qutationsProvide timely data to salesPlace order once CPO is recievedStrong followup and coordination with internal and external stakeholders

E-PROCUREMENT - RFQ

During the procurement process, most people are familiar with the acronym RFP, whichstands for Request for Proposal. As anyone in purchasing knows, RFPs are created bybusinesses and sent to vendors in order to get a full quote on a project. Generally, theRFP contains the price, as well as any other important details that the businesses mightneed to consider during the review process. The price stated in the RFP is oftenconsidered to be the bid price for that project.

Another, perhaps less familiar, acronym used in procurement is RFQ. RFQ stands forRequest for Quote. When a buyer sends out an RFQ, he is generally getting a feel forprices about an upcoming project. He is not opening the bidding on a project. Responsesto RFQs are not considered formal bids and, therefore, can be changed if the same buyer

later sends out a more formal RFP.

RFQs do play an important role in the procurement process. They are usually the firststep taken by buyers, and the responses offer a wealth of data that can help them later onwhen they need to begin taking formal bids. For example, if Buyer A sends out an RFQto three companies and only two respond to his inquiry, Buyer A automatically knowsthat the third person is either not interested in doing business with him or is not a reliablevendor. Either way, he has narrowed down his pool of potential suppliers, thus makingless work for himself later on.

The RFQs can also help buyers determine their budgets for a particular project. Forinstance, if a new type of metal hose is needed by Buyer A for his project, and he'sunsure of how much the purchase will cost, he can send out RFQs. By taking an averagefrom all of the responses, Buyer A will have a decent range with which to plan his budgetand also with which to compare later bids.

Usually after the buyer has received responses to the RFQs and has determined hiscriteria for selecting a vendor, he can then open up formal bidding procedures. If he isusing an online reverse auction, he can automatically send invitations to any vendors with


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whom he is interested in doing business. The RFQs will have helped him make hisselection of vendors. For example, Buyer A again sends out RFQs. Two vendors fail torespond by the designated date, so those vendors can be eliminated from the running. Ofthe suppliers who did respond, one may have quoted $5000, another may have quoted$6000, and a third may have quoted $10,000. Obviously, if Buyer A is concerned with

price, he may choose to exclude the third vendor simply because his quote was out of theaverage budget range (around $7000).

RFQs may seem like an unnecessary extra step in the procurement process, but they doplay an important role. As stated before, they do allow buyers to get a general idea ofcosts before they begin holding formal bidding. Without RFQs, both buyers and sellersmight suffer. For instance, if Buyer A did not request any quotes but simply beganholding bids and his first bids were for $2000 and $3000. However the details of an RFQwould help the buyer to know that these two bidders were not including some key itemsin their bids. He may assume that these are the average costs for what his project requires.Later bids of $5000 and $6000 may not even be considered even though they are more

accurate. As a result, low-ball bidders may win out against legitimate vendors and buyersmay end up paying more their goods or services in the long run.

RFQs also serve as a way for vendors to opt out of the bidding process early. If acompany is too overworked or is simply not capable of providing that type of good orservice, it simply does not need to respond or can refuse to submit a quote. This stephelps both the buyer and the seller by saving them time and money later on.

Essentially, RFQs are just a way for businesses to get some preliminary pricinginformation and to narrow down qualified vendors. They need to know what to anticipatewhen the real bidding process begins and they need to determine their project's budget,otherwise they may encounter additional problems down the road.

TORs - Terms of Reference

Chief procurement officerFrom Wikipedia, the free encyclopedia

A Chief Procurement Officer (CPO) is an executiverole focused on sourcing,procurement, and supply managementfor an enterprise.

Globalization, compliance pressures, supply market risk andprocurement automationhave simultaneously elevated the visibility of the procurement discipline withincompanies and increased supply management challenges. In response, procurementexecutives have established agendas for organizational transformation. These plansincorporate activities to bring more spending under management, enhance theprocurement organization's skills and visibility, and increase both internal and externalcollaboration.
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A chief procurement officer (CPO) typically is the executive of a corporation who isresponsible for the management, administration, and supervision of the companysacquisition programs. He may be in charge of the contracting services and may managethe purchase of supplies, equipment, and materials. It often is his responsibility to sourcegoods and services, and to negotiate prices and contracts.

The chief procurement officer often ensures that goods and services are promptlydelivered. He may be responsible for making sure vendors are paid in a timely manner. ACPO's focus generally is on supply management, whether it is in an office,manufacturing, or retail setting.

Some CPOs are in charge of locating sources for supplies and services, and ofmaintaining relations with suppliers and vendors. They usually negotiate with vendors toget the best prices and deals, utilizing the power of purchase and the economies of scale.Often they set up contracts between vendors and the company.

Aside from sourcing and negotiating prices and contracts, a chief procurement officermay see to it that files containing all information regarding purchases and services arekept in an orderly fashion. He or his staff usually works with the accounting departmentto ensure that vendors are paid on schedule. In addition, he usually keeps inventory levelscurrent and foresees future needs of the company.

Many industries employ procurement officers, from small companies to globalorganizations. In a small company, the procurement officer may work singly, but oftenthere is a team that executes the purchasing for an organization. If working in for amultinational corporation, the chief procurement officer might have to manage a globalteam.

Whether at a small company or a large one, the chief procurement officer usuallyprovides overall leadership to the purchasing team and ensures that procurement policiesand procedures are followed. Typically, he also is constantly in search of better qualityproducts and better prices. In a lot of companies, all procurement decisions ultimatelyend up at the desk of the CPO.

The position of the chief procurement officer is believed by many to have taken onincreased significance in corporations, and the role is thought to have grown morestrategic in recent years. Globalization, compliance pressures, and other factors havetriggered a trend toward centralization of the procurement function for the purposes of

standardization and leverage. Many CPOs report directly to the president or the chiefexecutive officer (CEO) of their company.

Exceptional interpersonal and negotiation skills generally are required of successful chiefpurchasing officers. Excellent oral and written communication skills may also benecessary. Fluency in other languages also can be considered an asset, since vendors maybe situated in other parts of the world.


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Someone who desires to become a procurement officer typically should possess abachelors degree, preferably in supply chain management, contracting, procurement,business administration, economics, finance, accounting, statistics, math, orcommunications. A masters degree usually is highly desirable.

A new Supply Managementreport published in July, 2011 says that 76 per cent of chiefprocurement officers (CPOs) feel the skills of their purchasing staff either 'needimprovement' (65 percent) or display a significant gap (11 percent), according toresearch from Ardent Partners [1]. This survey of nearly 250 CPOs around the worldincludes a procurement competency matrix, which considered the higher-level skills apurchasing department should have. Contract management, category management, dataanalysis and presentation expertise were rated as average by CPOs, with no competenciesachieving a good or excellent rating. The report said there was a 'picture of a verymiddle-of-the-road set of skills residing within the typical procurement department.' Italso added: 'For the average department, opportunities for improvement abound.'"

supply chain managementFrom Wikipedia, the free encyclopedia

This article needs additional citations forverification. Please helpimprove thisarticle by adding citations toreliable sources. Unsourced material may bechallenged and removed. (August 2009)

Supply chain management is aimed at managing complex and dynamic supply anddemand networks.[1] (cf. Wieland/Wallenburg, 2011)

Supply chain management (SCM) is the management of a network of interconnectedbusinesses involved in the ultimate provision ofproduct and servicepackages required byend customers (Harland, 1996).[2] Supply chain management spans all movement andstorage ofraw materials, work-in-process inventory, and finished goods from point oforigin to point of consumption (supply chain).
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Another definition is provided by the APICS Dictionary when it defines SCM as the"design, planning, execution, control, and monitoring of supply chain activities with theobjective of creating net value, building a competitive infrastructure, leveragingworldwide logistics, synchronizing supply with demand and measuring performanceglobally."

Contents

[hide]

1 Definitions 2 Problems addressed by supply chain management 3 Activities/functions

o 3.1 Strategic level

o 3.2 Tactical level

o 3.3 Operational level

4 Importance of supply chain management 5 Historical developments in supply chain management 6 Supply chain business process integration 7 Theories of supply chain management 8 Supply chain centroids 9 Tax efficient supply chain management 10 Supply chain sustainability 11 Components of supply chain management integration 12 Supply chain systems and value 13 Global supply chain management 14 See also 15 References

16 External links

[edit] Definitions

More common and accepted definitions of supply chain management are:

Supply chain management is the systematic, strategic coordination of thetraditional business functions and the tactics across these business functions

within a particular company and across businesses within the supply chain, for thepurposes of improving the long-term performance of the individual companiesand the supply chain as a whole (Mentzeret al., 2001).[3]

A customer focused definition is given by Hines (2004:p76) "Supply chainstrategies require a total systems view of the linkages in the chain that worktogether efficiently to create customer satisfaction at the end point of delivery tothe consumer. As a consequence costs must be lowered throughout the chain by
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driving out unnecessary costs and focusing attention on adding value. Throughoutefficiency must be increased, bottlenecks removed and performance measurementmust focus on total systems efficiency and equitable reward distribution to thosein the supply chain adding value. The supply chain system must be responsive tocustomer requirements."[4]

Global supply chain forum - supply chain management is the integration of keybusiness processes across the supply chain for the purpose of creating value forcustomers and stakeholders (Lambert, 2008).[5]

According to the Council of Supply Chain Management Professionals (CSCMP),supply chain management encompasses the planning and management of allactivities involved in sourcing,procurement, conversion, and logisticsmanagement. It also includes the crucial components of coordination andcollaboration with channel partners, which can be suppliers,intermediaries, third-party service providers, and customers. In essence, supply chain management

integrates supply and demand management within and across companies. Morerecently, the loosely coupled, self-organizing network of businesses thatcooperate to provide product and service offerings has been called theExtendedEnterprise.

A supply chain, as opposed to supply chain management, is a set of organizations directlylinked by one or more of the upstream and downstream flows of products, services,finances, and information from a source to a customer. Managing a supply chain is'supply chain management' (Mentzeret al., 2001).[3]

Supply chain management software includes tools or modules used to execute supply

chain transactions, manage supplier relationships and control associated businessprocesses.

Supply chain event management (abbreviated as SCEM) is a consideration of all possibleevents and factors that can disrupt a supply chain. With SCEM possible scenarios can becreated and solutions devised.

[edit] Problems addressed by supply chain management

Supply chain management must address the following problems:

Distribution Network Configuration: number, location and network missions ofsuppliers, production facilities, distribution centers, warehouses, cross-docks andcustomers.

Distribution Strategy: questions of operating control (centralized, decentralizedor shared); delivery scheme, e.g., direct shipment, pool point shipping, crossdocking, DSD (direct store delivery), closed loop shipping; mode oftransportation, e.g., motor carrier, including truckload, LTL,parcel; railroad;intermodal transport, including TOFC (trailer on flatcar) and COFC (container on
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flatcar); ocean freight; airfreight; replenishment strategy (e.g., pull, push orhybrid); and transportation control (e.g., owner-operated,private carrier, commoncarrier, contract carrier, or3PL).

Trade-Offs in Logistical Activities: The above activities must be wellcoordinated in order to achieve the lowest total logistics cost. Trade-offs may

increase the total cost if only one of the activities is optimized. For example, fulltruckload (FTL) rates are more economical on a cost per pallet basis than less thantruckload (LTL) shipments. If, however, a full truckload of a product is ordered toreduce transportation costs, there will be an increase in inventory holding costswhich may increase total logistics costs. It is therefore imperative to take asystems approach when planning logistical activities. These trade-offs are key todeveloping the most efficient and effective Logistics and SCM strategy.

Information: Integration of processes through the supply chain to share valuableinformation, including demand signals, forecasts, inventory, transportation,potential collaboration, etc.

Inventory Management: Quantity and location of inventory, including raw

materials, work-in-process (WIP) and finished goods. Cash-Flow: Arranging the payment terms and methodologies for exchanging

funds across entities within the supply chain.

Supply chain execution means managing and coordinating the movement of materials,information and funds across the supply chain. The flow is bi-directional.

[edit] Activities/functions

Supply chain management is a cross-function approach including managing themovement of raw materials into an organization, certain aspects of the internal processing

of materials into finished goods, and the movement of finished goods out of theorganization and toward the end-consumer. As organizations strive to focus on corecompetencies and becoming more flexible, they reduce their ownership of raw materialssources and distribution channels. These functions are increasingly being outsourced toother entities that can perform the activities better or more cost effectively. The effect isto increase the number of organizations involved in satisfying customer demand, whilereducing management control of daily logistics operations. Less control and more supplychain partners led to the creation of supply chain management concepts. The purpose ofsupply chain management is to improve trust and collaboration among supply chainpartners, thus improving inventory visibility and the velocity of inventory movement.

Several models have been proposed for understanding the activities required to managematerial movements across organizational and functional boundaries. SCORis a supplychain management model promoted by the Supply Chain Council. Another model is theSCM Model proposed by the Global Supply Chain Forum (GSCF). Supply chainactivities can be grouped into strategic, tactical, and operational levels. The CSCMP hasadopted The American Productivity & Quality Center (APQC) Process ClassificationFrameworkSM a high-level, industry-neutral enterprise process model that allowsorganizations to see their business processes from a cross-industry viewpoint.[6]
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[edit] Strategic level

Strategic network optimization, including the number, location, and size ofwarehousing, distribution centers, and facilities.

Strategic partnerships with suppliers, distributors, and customers, creating

communication channels for critical information and operational improvementssuch as cross docking, direct shipping, and third-party logistics.

Product life cycle management, so that new and existing products can beoptimally integrated into the supply chain and capacity management activities.

Information technology chain operations. Where-to-make and make-buy decisions. Aligning overall organizational strategy with supply strategy. It is for long term and needs resource commitment.

[edit] Tactical level

Sourcing contracts and other purchasing decisions. Production decisions, including contracting, scheduling, and planning process

definition. Inventory decisions, including quantity, location, and quality of inventory. Transportation strategy, including frequency, routes, and contracting. Benchmarking of all operations against competitors and implementation ofbest

practices throughout the enterprise. Milestone payments. Focus on customer demand and Habits.

[edit] Operational level

Daily production and distribution planning, including all nodes in the supplychain.

Production scheduling for each manufacturing facility in the supply chain (minuteby minute).

Demand planning and forecasting, coordinating the demand forecast of allcustomers and sharing the forecast with all suppliers.

Sourcing planning, including current inventory and forecast demand, incollaboration with all suppliers.

Inbound operations, including transportation from suppliers and receivinginventory.

Production operations, including the consumption of materials and flow offinished goods.

Outbound operations, including all fulfillment activities, warehousing andtransportation to customers.

Order promising, accounting for all constraints in the supply chain, including allsuppliers, manufacturing facilities, distribution centers, and other customers.
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From production level to supply level accounting all transit damage cases &arrange to settlement at customer level by maintaining company loss throughinsurance company.

[edit] Importance of supply chain management

Organizations increasingly find that they must rely on effective supply chains, ornetworks, to compete in the global market and networked economy.[7] In Peter Drucker's(1998) new management paradigms, this concept of business relationships extendsbeyond traditional enterprise boundaries and seeks to organize entire business processesthroughout a value chain of multiple companies.

During the past decades, globalization, outsourcing andinformation technology haveenabled many organizations, such asDellandHewlett Packard, to successfully operatesolid collaborative supply networks in which each specialized business partner focuses ononly a few key strategic activities (Scott, 1993). This inter-organizational supply network

can be acknowledged as a new form of organization. However, with the complicatedinteractions among the players, the network structure fits neither "market" nor"hierarchy" categories (Powell, 1990). It is not clear what kind of performance impactsdifferent supply network structures could have on firms, and little is known about thecoordination conditions and trade-offs that may exist among the players. From a systemsperspective, a complex network structure can be decomposed into individual componentfirms (Zhang and Dilts, 2004). Traditionally, companies in a supply network concentrateon the inputs and outputs of the processes, with little concern for the internalmanagement working of other individual players. Therefore, the choice of an internalmanagement control structure is known to impact local firm performance (Mintzberg,1979).

In the 21st century, changes in the business environment have contributed to thedevelopment of supply chain networks. First, as an outcome of globalization and theproliferation of multinational companies, joint ventures, strategic alliances and businesspartnerships, significant success factors were identified, complementing the earlier "Just-In-Time", "Lean Manufacturing" and "Agile Manufacturing" practices.[8]Second,technological changes, particularly the dramatic fall in information communication costs,which are a significant component of transaction costs, have led to changes incoordination among the members of the supply chain network (Coase, 1998).

Many researchers have recognized these kinds of supply network structures as a new

organization form, using terms such as "Keiretsu", "Extended Enterprise", "VirtualCorporation", "Global Production Network", and "Next Generation ManufacturingSystem".[9] In general, such a structure can be defined as "a group of semi-independentorganizations, each with their capabilities, which collaborate in ever-changingconstellations to serve one or more markets in order to achieve some business goalspecific to that collaboration" (Akkermans, 2001).
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The security management system for supply chains is described in ISO/IEC 28000 andISO/IEC 28001 and related standards published jointly by ISO and IEC.

Logistics & Transportation

Transportation often represents a large component of total supply chain cost and totaloperating costs. If your business has an in-house fleet, it can also represent a large assetbase. Managing transportation effectively can produce substantial benefits. Getting itwrong can really hurt operating performance and business results.

SCS has the experience, the methods, the tools and the insights to address the full rangeof transportation management challenges. Our transportation team has worked withshippers, with 3PLs and with freight service providers. We know transportation insideout.

Our work in transportation management has included:

Investigative freight cost analysis Mode and Carrier selection and management Freight audits and contract assessments Selection and implementation of transportation management systems Route optimization Fleet management

Warehousing

Owners and operators of distribution centres frequently encounter space constraints,

productivity gaps and higher-than-necessary costs. Even well-designed DCs becomesub-optimal over time we see examples on a regular basis.

If this is your situation, then you need to determine root causes and identify the bestsolution. You probably need to justify an investment and then implement change.

SCS engineers have decades of experience upgrading DCs and planning new ones. Youcan count on us to recognize the root causes of DC issues, to know the potential solutionsand what is most cost-effective, to clarify the return on investment and to get the jobdone.

SCS warehousing and DC optimization experience includes:

Facility and operations assessments DC design, planning and site selection Cross-docking Material handling equipment planning and acquisition Warehouse technology Project management and transition management
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supply chain management (SCM)

Supply chain management (SCM) is the oversight of materials, information, and financesas they move in a process from supplier to manufacturer to wholesaler to retailer toconsumer. Supply chain management involves coordinating and integrating these flowsboth within and among companies. It is said that the ultimate goal of any effective supplychain management system is to reduce inventory (with the assumption that products areavailable when needed). As a solution for successful supply chain management,sophisticated software systems with Web interfaces are competing with Web-basedapplication service providers (ASP) who promise to provide part or all of the SCMservice for companies who rent their service.

Supply chain management flows can be divided into three main flows:

The product flow

Learn More

Supply chain management software selection for manufacturers WMS
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Supply chain planning and execution

The information flow The finances flow

The product flow includes the movement of goods from a supplier to a customer, as wellas any customer returns or service needs. The information flow involves transmittingorders and updating the status of delivery. The financial flow consists of credit terms,payment schedules, and consignment and title ownership arrangements.

There are two main types of SCM software: planning applications and executionapplications. Planning applications use advanced algorithms to determine the best way tofill an order. Execution applications track the physical status of goods, the managementof materials, and financial information involving all parties.

Some SCM applications are based on open data models that support the sharing of data

both inside and outside the enterprise (this is called the extended enterprise, and includeskey suppliers, manufacturers, and end customers of a specific company). This shared datamay reside in diverse database systems, ordata warehouses, at several different sites andcompanies.

By sharing this data "upstream" (with a company's suppliers) and "downstream" (with acompany's clients), SCM applications have the potential to improve the time-to-market ofproducts, reduce costs, and allow all parties in the supply chain to better manage currentresources and plan for future needs.

Increasing numbers of companies are turning to Web sites and Web-based applications as

part of the SCM solution. A number of major Web sites offere-procurementmarketplaces where manufacturers can trade and even make auction bids with suppliers.

Job Description for: Purchasing Managers

Plan, direct, or coordinate the activities of buyers, purchasing officers, and relatedworkers involved in purchasing materials, products, and services.

Job Tasks for: Purchasing Managers

Analyze market and delivery systems in order to assess present and future

material availability. Control purchasing department budgets. Develop and implement purchasing and contract management instructions,

policies, and procedures. Direct and coordinate activities of personnel engaged in buying and storing

materials, equipment, machinery, and supplies. Interview and hire staff, and oversee staff training.
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Participate in the development of specifications for equipment, products orsubstitute materials.

Prepare reports regarding market conditions and merchandise costs. Resolve vendor or contractor grievances, and claims against suppliers. Review purchase order claims and contracts for conformance to company policy.

Review, evaluate, and approve specifications for issuing and awarding bids. Administer on-line purchasing systems. Arrange for disposal of surplus materials. Locate vendors of materials, equipment or supplies, and interview them in order

to determine product availability and terms of sales. Maintain records of goods ordered and received. Prepare and process requisitions and purchase orders for supplies and equipment. Prepare bid awards requiring board approval. Represent companies in negotiating contracts and formulating policies with

suppliers.

Required Knowledge for: Purchasing Managers

Administration and Management -- Knowledge of business and managementprinciples involved in strategic planning, resource allocation, human resourcesmodeling, leadership technique, production methods, and coordination of peopleand resources.

Mathematics -- Knowledge of arithmetic, algebra, geometry, calculus, statistics,and their applications.

Economics and Accounting -- Knowledge of economic and accounting principlesand practices, the financial markets, banking and the analysis and reporting of

financial data.

Job Activities for: Purchasing Managers

Getting Information -- Observing, receiving, and otherwise obtaining informationfrom all relevant sources.

Monitoring and Controlling Resources -- Monitoring and controlling resourcesand overseeing the spending of money.

Making Decisions and Solving Problems -- Analyzing information and evaluatingresults to choose the best solution and solve problems.

Analyzing Data or Information -- Identifying the underlying principles, reasons,or facts of information by breaking down information or data into separate parts.

Communicating with Persons Outside Organization -- Communicating withpeople outside the organization, representing the organization to customers, thepublic, government, and other external sources. This information can beexchanged in person, in writing, or by telephone or e-mail.


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Communicating with Supervisors, Peers, or Subordinates -- Providing informationto supervisors, co-workers, and subordinates by telephone, in written form, e-mail, or in person.

Documenting/Recording Information -- Entering, transcribing, recording, storing,or maintaining information in written or electronic/magnetic form.

Monitor Processes, Materials, or Surroundings -- Monitoring and reviewinginformation from materials, events, or the environment, to detect or assessproblems.

Processing Information -- Compiling, coding, categorizing, calculating,tabulating, auditing, or verifying information or data.

Organizing, Planning, and Prioritizing Work -- Developing specific goals andplans to prioritize, organize, and accomplish your work.

Procurement Manager job descriptionSummary

The job of procurement manager involves sourcing and purchasing goods and servicesfor the company according to its available budget for each department. In themanufacturing sector, the purchasing of raw materials on a tender basis is a key part ofthe procurement managers responsibility. Close control of purchasing budgets,negotiating with suppliers, ensuring delivery schedules are met and preparing ongoingreports for company executives are all part of the job. Travel may also be involved ifsupplies are sourced from abroadPlanning, organising, financial, budgeting and decision-making skills are all essentialrequirements, as are leadership and communications abilities. Strong market awareness,attention to detail and problem-solving are also necessary attributes. This position is oftengained through the promotion of an existing employee with in-depth knowledge of the

manufacturing sector, with experience and/or a degree in logistics, businessadministration or purchasing an advantageSalaries for the position are commensurate with the responsibility involved and come inat between 25,000 and 55,000 dependent on experience and the size of the company.

Description:

Purchasing orProcurement Managers handle the responsibility of buying the requisiteservice or goods needed by their companies. Some who work in manufacturingcompanies may deal with sourcing and ordering raw materials. They have to be good at

finance and managing budgets as companies are always concerned with minimisingspending costs. Other not so commonly expenditures in their scope include consultancy,marketing, information technology, facilities, logistics, or human resource.

Any goods or service sourced and paid for by a company falls under their portfolio.Required skills involved in this job include forecasting, planning, and correctly assessingneeds. They also have to be able to network and negotiate with suppliers, to ensure priceadjustments and access to retail costs. Their duties may be shared with a team, depending


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on the size of the company. Travelling may be involved if they have to source materialsor goods from other countries.

A Procurement Manager usually performs many of the following tasks:

Researching for new suppliers Following market trends Liaising with suppliers Projecting stock levels Negotiating prices with suppliers Reviewing tenders Following up with suppliers concerning delivery times Managing budgets Preparing reports Reporting to Senior Managers and Executives

Skills:

Relationship management Communication and interpersonal relations Customer service and relations Finance and budgeting Making decisions Planning and organising Meet targets

Stress management Negotiating and networking Good judgement and analytical ability Accuracy and attention to detail Leadership and teamwork Problem-solving Commercial awareness

Education:

Employees usually access the position ofProcurement Manager through job promotion.This position requires extensive knowledge about the industry in which you operate andthe company needs. Having degrees in Logistics, Business Administration, Supply ChainManagement or Purchasing is extremely helpful. People who are interested in thisposition can pursue BTEC, HND/HNC, or NVQ certifications as well.

procurement executives are also known as purchasing agents or buyers

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