Alternate Title(s) | Purchasing Agent, Purchasing Specialist, Commodity Manager, Purchasing Manager |
Minimum Education Requirements | Bachelor's degree |
Salary | See Bureau of Labor Statistics for more information |
Job Skills | - Analytical skills. When evaluating suppliers, buyers and purchasing agents must analyze their options and choose a supplier with the best combination of price, quality, delivery, or service. - Decision making skills. Buyers and purchasing agents must have the ability to make informed and timely decisions, choosing products that they think will sell. - Math skills. Buyers and purchasing agents must possess basic math skills. They must be able to compare prices from different suppliers to ensure that their organization is getting the best deal. - Negotiating skills. Buyers and purchasing agents often must negotiate the terms of a contract with a supplier. Interpersonal skills and self-confidence, in addition to knowledge of the product, can help lead to successful negotiations. |
Job Duties | Buyers and purchasing agents typically do the following: - Evaluate suppliers on the basis of the price, quality, and speed of delivery of their products and services - Interview vendors and visit suppliers’ plants and distribution centers to examine and learn about products, services, and prices - Attend meetings, trade shows, and conferences to learn about new industry trends and make contacts with suppliers - Analyze price proposals, financial reports, and other information to determine reasonable prices - Negotiate contracts on behalf of their organization - Work out agreements with suppliers, such as when products will be delivered - Meet with staff and vendors to discuss defective or unacceptable goods or services and determine corrective action - Evaluate and monitor contracts to be sure that vendors and supplies comply with the terms and conditions of the contract and to determine the need for changes - Maintain and review records of items bought, costs, deliveries, product performance, and inventories |
Job Profile | Buyers and purchasing agents buy farm products, durable and nondurable goods, and services for organizations and institutions. They try to get the best deal for their organization: the highest quality goods and services at the lowest cost. They do this by studying sales records and inventory levels of current stock, identifying foreign and domestic suppliers, and keeping up to date with changes affecting both the supply of, and demand for, products and materials. Purchasing agents and buyers consider price, quality, availability, reliability, and technical support when choosing suppliers and merchandise. To be effective, purchasing agents and buyers must have a working technical knowledge of the goods or services they are purchasing. Evaluating suppliers is one of the most critical functions of a buyer or purchasing agent. Many organizations run on a lean manufacturing schedule and use just-in-time inventories, so any delays in the supply chain can shut down production and cause the organization to lose customers. Buyers and purchasing agents use many resources to find out all they can about potential suppliers. They attend meetings, trade shows, and conferences to learn about new industry trends and make contacts with suppliers. They often interview prospective suppliers and visit their plants and distribution centers to assess their capabilities. Buyers and purchasing agents must make certain that the supplier can deliver the desired goods or services on time, in the correct quantities, and without sacrificing quality. Once they have gathered information on suppliers, they sign contracts with suppliers who meet the organization’s needs and they place orders. Buyers who purchase items to resell to customers may determine which products their organization will sell. They need to be able to predict what will appeal to their customers. If they are wrong, they could jeopardize the profits and reputation of their organization. |
The information presented within this occupational profile was synthesized from the Bureau of Labor Statistics, U.S. Department of Labor, Outlook Handbook, 2016-17 Edition and the U.S. Office of Personnel Management’s Handbook of Occupational Groups & Families.