Procurement Manager Job Description
Procurement is a department often found within finance or logistics. Companies are often inundated with requests from suppliers to provide services so a procurement department will manage suppliers and develop purchasing strategies which meet budgetary and other operational requirements of the company.
According to research from Science Warehouse 2014, there was an upturn in confidence in the procurement sector. Of 260 companies surveyed worldwide, 43% planned to invest in staff training throughout the year, an increase of one-fifth compared to the previous year. Key aims of procurement departments included becoming more strategic and reduced costs.
What is a Procurement Manager?
A Procurement Manager is a mid/senior level management position designed to ensure a company and its staff adhere to a particular purchasing strategy. This approach will help to maintain consistency around the clock as well as keeping costs within a budget. Depending on the size of the operation the Procurement Manager may manage a team of people each responsible for procurement in certain areas such as stationary, travel, accommodation and stock.
Who does a Procurement Manager report to?
Quite often in service led organisations the Procurement Manager may act as part of a finance team and, therefore, report to a Head of Finance of Chief Finance Officer. In the manufacture and logistical operations, the Procurement Manager may be more closely aligned to operations and, therefore, report to an Operations Director.
What is a Procurement Manager responsible for?
A Procurement Manager is responsible for ensuring that a company has a very clear strategy when purchasing goods and services. The Procurement Manager may set policies for purchasing that take into account budgets, stock requirements and skills required.
For many companies costs are a key factor in their purchasing decisions so the Procurement Manager will ensure suppliers are aware of this.
Quite often companies require suppliers who meet certain standards such as ISO accreditation or a particular level of insurance cover. The Procurement Manager will be responsible for ensuring that suppliers meet these requirements.
What is a typical day of a Procurement Manager?
In a typical day, the Procurement Manager may be involved in meetings with finance and operational leadership teams to understand issues affecting departments. The Procurement Manager may also be working on upcoming tenders. Much of the day may be spent handling queries from potential suppliers and as a people manager time may also be spent supporting the team.
What are the salaries and benefits of a procurement job role?
There are numerous benefits of being a Procurement Manager. Salaries of a typical Procurement Manager start in the region of £45k upward dependent on the size of the organisation and location. There is currently a high demand for Procurement Managers and with the uplift in training, there are plenty of opportunities.
What skills do you need in procurement?
As a Procurement Manager, you will need strong interpersonal skills with the ability to negotiate as you try to achieve the best price from suppliers. You will also need the ability to manage the financial aspects of the role and understand budget management processes.
The role will include aspects of forecasting future business activity; therefore, post holders will require a thorough commercial understanding and the ability to plan and forecast demand. Finally, if you have responsibility for a procurement team, you will need skills in management, delegation and motivational techniques.
How do you get started in procurement and what kind of qualifications do you need?
Unlike many other departments, there are no specific requirements to hold procurement related qualifications however the Chartered Institute of Procurement and Supply could help you achieve some.
Typical entry level roles may include Buyers Assistant, Junior Buyer, Finance Assistant or Procurement Assistant. Relevant degree backgrounds into such positions may include business and management, project management, supply chain or mathematics.
Outside higher education there is a range of opportunities to undertake entry-level apprenticeships in procurement and buying roles.
What is career progress like for Procurement Managers?
A Procurement Manager in a large organisation may have the opportunity to work toward a Head Buyer or Group Director of Procurement and Purchasing role. In a smaller company development may be more limited towards an Operations Director or Finance Director role.
For those people who have very sector specific backgrounds in areas such as IT and Engineering, there may be suitable positions across the globe and for many career progression can even include self-employment and consultancy.