What Does A Procurement Manager Do?

Most companies need procurement managers of some sort. These managers ensure that the company has the supplies and services it needs to function. The job of a procurement manager includes researching suppliers, negotiating contracts, and managing inventory and shipments. Keep reading to learn more about what procurement managers do.

What Is a Procurement Manager?

Procurement managers are a type of business professional who is in charge of obtaining goods and services for their company. These goods and services can vary significantly depending on the industry the procurement manager works in.

Skills Required of a Procurement Manager

There are a few skills needed to succeed in a procurement manager role. These include:

• analytical skills
• communication skills
• creative problem-solving skills
• management skills
• negotiation skills

The specific skill set needed to be a procurement manager can depend slightly on your specific role and industry of employment.

Benefits of Being a Procurement Manager

There are several benefits of being a procurement professional. First, these are jobs with a lot of day-to-day variety, so they don't get repetitive or boring. They also allow you to develop interpersonal relationships with a variety of colleagues and vendors.

There is often job stability within procurement management. Although automation has taken over some facets of the job, companies will always need procurement managers to oversee their operations.

Additionally, there is room for growth within a procurement department. You may start in an entry-level role, such as procurement assistant, and work your way up to chief procurement officer as you complete years of experience.

What Are the Responsibilities of a Procurement Manager?

Procurement managers are part of procurement teams and often have a range of responsibilities. We've highlighted some key procurement manager responsibilities below.

Selecting and Evaluating Suppliers

One important role of procurement managers is choosing what suppliers to use. To do this, they gather data from potential suppliers to see what these suppliers can offer the business. They then use this data to see which suppliers can supply what they need for the best prices. This data helps ensure the sourcing process is fair and fully informed.

Negotiating With Vendors

Another part of the procurement process is contract negotiation. Negotiating contracts is a key part of strategic sourcing, as it allows businesses to find the best deals and potential cost savings. To be successful at contract negotiations, procurement managers often need to take care of their supplier relationships. When these vendor relationships are strong, procurement managers may be able to secure better deals.

Managing Business Inventories

To determine what procurement strategies are needed, procurement managers need to understand what their business inventory currently looks like and what their business needs are.

The way this is done can vary; some businesses use special software, while others use simple Excel spreadsheets. The type of inventory that a procurement manager oversees can vary as well. For example, a healthcare facility's inventory may include gowns and masks, while a construction facility's inventory may include hard hats and gloves.

Identifying Purchasing Risks

Another important responsibility of procurement managers is risk mitigation. This means that they have to look at a variety of factors to determine what purchases could be risky and how to handle those risks.

Factors that may influence risk management include things like industry trends, supply chain disruptions, and supplier performance. Procurement managers must assess all of these to make both stakeholders, employees, and any customers a business may have happy.

Oversee Incoming Shipments

Finally, once a procurement team has chosen suppliers, negotiated with vendors, and identified purchasing risks, they need to ensure that their purchase orders arrive accurately and in a timely fashion.

This is in part to ensure quality supplier performance, but also to ensure that the business needs are being met. Procurement managers may use specialized software or another type of template or workflow to oversee incoming shipments.

Educational Requirements of a Procurement Manager

To become a procurement manager, you'll typically need to earn a bachelor's degree and gain some entry-level working experience. We've broken down the steps to become a procurement manager below.

Get a Bachelor's Degree

Procurement managers generally need a bachelor's degree to get hired. Bachelor's degrees usually take four years to complete. Bachelor's degrees in business administration or a related field is a common choice. Common majors or specializations for procurement managers include:

• supply chain management
• economics
• finance

Gain Experience in the Procurement Field

Once you've earned your bachelor's degree, you'll need to gain experience in the procurement industry. Common entry-level roles within procurement departments include:

• buyer
• procurement analyst
• purchasing agent
• purchasing coordinator

These entry-level roles will help you understand key procurement policies and allow you to start building relationships with those in the industry and your team members.

Acquire the Proper Certification

While certification isn't required to land a job as a procurement manager, some employers require it. Holding certification can also help you get hired and get a promotion. Two of the most common certifications for procurement professionals are the Certified Purchasing Professional (CPP) certification and the Certified Professional Purchasing Manager (CPPM) certification from the American Purchasing Society (APS).

Consider Earning an Advanced Degree

Like certification, an advanced degree isn't a requirement for a role in procurement, but it can help you land a job and make you more likely to be considered for a promotion. Common advanced degrees for procurement managers are Master of Science or Master of Business Administration (MBA) in supply chain management. However, some colleges and universities offer MBAs specifically in procurement and purchasing.

FAQs About Procurement Managers

Below, we've answered some frequently asked questions about procurement managers.

Is It Worth It To Become a Procurement Manager?

For many, it's worth it to become a procurement manager as these jobs offer a variety and opportunities for career growth. However, it's important to note that the Bureau of Labor Statistics (BLS) expects job growth for purchasing managers, buyers, and purchasing agents to decrease by 6% by 2032.

How Long Does It Take To Become a Procurement Manager?

The length of time it takes to become a procurement manager can vary. At a minimum, you'll need four years of school to complete a bachelor's program. After that, you'll need a few years of experience before you can become a procurement manager. You may also want to consider earning certification or a master's degree.

What Is a Typical Day Like as a Procurement Manager?

A typical day as a procurement manager can vary depending on your employer, procurement team, and field of business. Some day-to-day tasks include researching and finding suppliers and managing inventory.

Tasks may also include:

• reviewing budgets
• collecting and analyzing procurement data
• ensuring company needs are met

However, these aren't necessarily done every day.

Can You Become a Procurement Manager Completely Online?

Many colleges and universities offer online business administration programs at both the bachelor's degree and master's degree levels. These allow students to do coursework online on their own schedules. However, you'll likely need entry-level experience in the procurement field before you can become a procurement manager. You may be able to find remote roles, but in-person positions are more common.